Are You at Risk of Wrongful VAT Registration
Can KRA Automatically Reclassify Your Genuine Consultants as Employees?
Kenya Revenue Authority recently issued a pivotal private ruling that clarifies the transitional application of the newly introduced five-year limitation on tax loss carry-forwards. Contrary to a logical interpretation of the new law, KRA has taken a stringent position: all tax losses incurred prior to the year of income 2020 have effectively expired and are no […]
Pesapal Limited v Commissioner of Domestic Taxes [2025] KEHC 12284 (KLR) Background KRA issued a VAT assessment against Pesapal for commissions earned from merchants, comprising a principal tax of Kshs. 76,836,162 and penalties/interest of Kshs. 33,982,992. Pesapal objected the VAT assessment, arguing its services were VAT-exempt financial services. The Tax Appeals Tribunal dismissed Pesapal’s appeal. […]
Kirin Pipes Limited v Commissioner of Intelligence & Enforcement [2025] KETAT 259 (KLR) Background The dispute arose from a tax investigation conducted by KRA into the affairs of Kirin Pipes Limited for the years 2019 to 2022. KRA identified a variance between the total deposits in the Kirin’s bank accounts and the turnover declared in […]
Introduction Capital Gains Tax (CGT) is a critical consideration when transferring ownership of assets such as property, stocks, or investments. In Kenya, CGT is levied at 15% on the profit (capital gain) earned from the transfer of an asset. This rate increased from 5% on 1st January 2023. Many taxpayers find themselves in disputes with the Kenya Revenue […]
Introduction Capital Gains Tax (CGT) is a critical consideration when transferring ownership of assets such as property, stocks, or investments. In Kenya, CGT is levied at 15% on the profit (capital gain) earned from the disposal of an asset. Understanding how to accurately compute this tax ensures compliance and avoids disputes with the Kenya Revenue […]
The Kenyan law clearly distinguishes between an employee (contract of service) and an independent contractor (contract for service). Section 2 of the Income Tax Act, a “contract of service” implies an employer-employee relationship, while a “contract for service” denotes an independent contractor arrangement. A contract of service is one that creates rights and responsibilities between parties […]