hisah wrote:Quote:Mr Kibaki said the adjusted accounts would result in losses or lower profits and the Treasury would be required to refund large sums of corporation taxes paid on the basis of profits earlier declared.
If indeed this goes the class action suit way, the dent on the balance sheets of the banks with a treasury out of sorts will indeed put a huge rod in the econ wheels...
I dont have the figures and math here but are corporate taxes paid by banks that big in KRAs revenue pool? I would hazard not, and perhaps that might be offset by the overcharged interest on govts domestic borrowing.
In any case, the govt can take the option of not refunding overstated tax returns and use them to adjust future tax returns. KRA already does this often when it is agreed a company paid more tax than was its due.
Walipe! The interest regime is just crazy and its not market forces or risk at work here. Even permanently employed people whose deductions are made at source are hit for ~15% loan and mortgage rates on average (sensible countries are at approx 4%!) ...where is the risk here? Ni cartels. Banking in Kenya needs a painful lesson.