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Tax Question...
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washiku
#21 Posted : Thursday, February 20, 2014 1:22:24 PM
Rank: Chief

Joined: 5/9/2007
Posts: 13,095
With the Taxes coming up everyday, dont be surprised if one county govt starts taxing grandmothers on all the money they are given by their children. Didn't I hear even harambees will soon be taxed? In a harambee situation, has one "earned" that money in the strict sense?
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Swenani
#22 Posted : Thursday, February 20, 2014 1:22:53 PM
Rank: User

Joined: 8/15/2013
Posts: 13,237
Location: Vacuum
jguru wrote:
he he he

Interesting that Accountants and Tax Consultants cannot agree on how much a lady with an income of KES50,000 should pay. Imagine the chaos when the income is 50 Million!

No wonder big companies like Nakumatt do not pay tax... smile


Its difficult dealing with tax consultants and auditors who dont have any accounting experience.Most of them graduated from campus or college and headed direct to be either tax consultants or auditors.

Auditors are the worst coz they only have the theoritical knowledge.

I think we should have a requirement that before you specialize in any accounting speciality you should have practically accounting experience first
If Obiero did it, Who Am I?
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nakujua
#23 Posted : Thursday, February 20, 2014 1:48:21 PM
Rank: Elder

Joined: 12/17/2009
Posts: 3,583
Location: Kenya
jguru wrote:
he he he

Interesting that Accountants, Auditors and Tax Consultants cannot agree on how much a lady with an income of KES50,000 should pay. Imagine the chaos when the income is 50 Million!

No wonder big companies like Nakumatt do not pay tax... smile

smile , considering this is a straight forward case with very well defined income streams - what happens to the typical kenyan mwanabiashara;
one who owns some rental mikokotenis, an old truck that he probably services himself, a few mpesa joints, a mitumba stall, offers mujengo consultancy services, has an escort agency, mc's at local functions, is a ghost kanjo employee ...
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sparkly
#24 Posted : Thursday, February 20, 2014 1:56:42 PM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
Kusadikika wrote:
A woman has a garden on which she grows mboga and rears cows. From the milk and mboga proceeds she nets about Ksh. 10,000 per month. She also has some rental houses that bring in another Ksh. 15,000. She has 5 grown children who each give her Ksh. 5,000 every month. All for a total of Ksh. 50,000 per month.

Question:

According to KRA (For taxation purposes) what is her income? Are all monies received considered income?

Naomba kufunzwa.


Farming and Rental will be taxed. Tax on the two streams is computed separately (separate sourced) and she will not be allowed to offset losses from one to another. If her tax liability is KShs 40k or more in the year she will be required to pay tax quarterly. If less, she can pay by 20th April the next year.
Life is short. Live passionately.
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jawgey
#25 Posted : Thursday, February 20, 2014 3:47:23 PM
Rank: Member

Joined: 1/13/2014
Posts: 398
Location: Denmark
jguru wrote:
he he he

Interesting that Accountants, Auditors and Tax Consultants cannot agree on how much a lady with an income of KES50,000 should pay. Imagine the chaos when the income is 50 Million!

No wonder big companies like Nakumatt do not pay tax... smile


Laughing out loudly Laughing out loudly Laughing out loudly
Seeing is believing
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Kusadikika
#26 Posted : Thursday, February 20, 2014 3:47:29 PM
Rank: Elder

Joined: 7/22/2008
Posts: 2,723
Nashukuru sana. So according to many of you except Gathige, KRA has no clause on gift giving? No limits?
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PeterReborn
#27 Posted : Thursday, February 20, 2014 4:18:34 PM
Rank: Veteran

Joined: 1/3/2014
Posts: 1,063
Kusadikika wrote:
Nashukuru sana. So according to many of you except Gathige, KRA has no clause on gift giving? No limits?


According to the income tax Act,non cash benefits will be taxed if the income is more than shs 36000 p.a.
The question is at what circumstance was the gift issued?If it was not in the course of business or employment such as dowry,then it is not taxable.
The court also stopped KRA from taxing windfall gains.
For the above query the income taxable is business and farming income at the graduated scale rates.
Consistency is better than intensity
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Much Know
#28 Posted : Thursday, February 20, 2014 4:51:10 PM
Rank: Elder

Joined: 12/6/2008
Posts: 3,585
PeterReborn wrote:

For the above query the income taxable is business and farming income at the graduated scale rates.

Kindly, Calculated together(Combined Gross Income from both) or Seperately,( A separate graduated scale for farming and another for rental), If the former what is the lowest rate (we have been advised the highest is 20%)?
Ras Kienyeji Man
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  | | Edit by user: Thursday, February 20, 2014 4:52 PM | Reason: Not specified
Lolest!
#29 Posted : Thursday, February 20, 2014 5:01:53 PM
Rank: Elder

Joined: 3/18/2011
Posts: 12,069
Location: Kianjokoma
jguru wrote:
he he he

Interesting that Accountants, Auditors and Tax Consultants cannot agree on how much a lady with an income of KES50,000 should pay. Imagine the chaos when the income is 50 Million!

No wonder big companies like Nakumatt do not pay tax... smile

why the assumption that the respondents fall under those jobs?
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butterflyke
#30 Posted : Thursday, February 20, 2014 5:12:20 PM
Rank: Elder

Joined: 5/1/2010
Posts: 3,024
Location: Hapa
jguru wrote:
he he he

Interesting that Accountants, Auditors and Tax Consultants cannot agree on how much a lady with an income of KES50,000 should pay. Imagine the chaos when the income is 50 Million!

No wonder big companies like Nakumatt do not pay tax... smile



i hope this is not mirrored kwa njiraini
Float like a butterfly, sting like a bee. - Muhammad Ali🐝
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