Wazua
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KRA's housing tax amnesty, and my choice to ignore it.
Rank: Chief Joined: 1/3/2007 Posts: 18,371 Location: Nairobi
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A (listed firm) CEO, an employee not shareholder, told me that KRA officials started calling him at home (not his office) when he ignored their not-so-subtle attempts at demanding bribes. He refused to take their calls on his cellphone (& home) and insisted on using written correspondence or calls at the office. Ultimately, they left him alone but it disrupted the firm's operations, including imports, as the CEO, CFO, accounting department and auditors spent a lot of time with the KRA going over the books. It turned out the books were fine. It's tough being a legitimate business(man) in Kenya. Large firms can hire auditors to fight the KRA but for small businesses it is horrendous. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 1/22/2015 Posts: 682
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@VVS, the dirty secret of most small business owners in Kenya is that no one ever pays taxes when their business is still fledgling with meagre profits in the beginning. If someone pays taxes, it's when the business is stable. On top of that, there's the silly cyber cafe KRA registration services that put everyone on VAT requirement. So the taxman, when sent to harass you, always knows he'll get something wrong with your small business if he digs hard enough, and he really presses that point, forcing you into a bribe
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Rank: Member Joined: 6/15/2013 Posts: 301
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Mike Ock wrote:@VVS, the dirty secret of most small business owners in Kenya is that no one ever pays taxes when their business is still fledgling with meagre profits in the beginning. If someone pays taxes, it's when the business is stable. On top of that, there's the silly cyber cafe KRA registration services that put everyone on VAT requirement. So the taxman, when sent to harass you, always knows he'll get something wrong with your small business if he digs hard enough, and he really presses that point, forcing you into a bribe But as a small business owner(apart from PAYE)are there any taxes you are obliged to pay if your turnover is less than 5m per annum? signed confused business owner
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Rank: Member Joined: 1/22/2015 Posts: 682
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Yes, sales tax, nhif, nssf, withholding tax and any other industry specific tax.
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Rank: New-farer Joined: 1/30/2015 Posts: 23
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Anyone who has complied or is intending to comply with this amnesty so far?
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Rank: Elder Joined: 5/27/2008 Posts: 3,760
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Mike Ock wrote:Yes, sales tax, nhif, nssf, withholding tax and any other industry specific tax. Your lies spoil your point. NHIF isn't a tax, its insurance. NSSF isn't a tax, its a saving.
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Rank: Member Joined: 8/29/2008 Posts: 573
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businesspundit wrote:Hello,
KRA is running a promotion. Landlord you are forgiven!
Is anyone actually paying tax of 10% of gross rental income?
can you give me your insights knowing 1/3 will be stolen.
First of all, for the record I am against paying tax to the Government. I avoid it like the plague.
Especially when I see prezo, ministers, mps, senators, mcas and everyone in between taking numerous useless foreign trips.
Then I see the huge convoys of cars with sirens and I get an ulcer. The big salaries. The big houses like the one of Kibaki with unpaid water bills that are supposedly the responsibility of tax payer.
When IEBC announced yesterday that they were going to procure a new set of bvr kits cause the ones they bought last time (that didn't work and costed a-ga-zillion) are obsolete, I almost threw up.
I think to my-self, you have to be an idiot to pay taxes. So what to do?
Hide? Under-declare? Wait for KRA? Wait for next amnesty? Bribe? Raise your rental prices and pass the cost to poor Wanjiku (or Atieno)?I'm waiting for the NEXT AMNESTY !! If I have to raise money for the Stanlib reit and december holidays,how can I accept the current KRA offer ?? But I will be ready to accept the next amnesty,possibly in 2020...
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Rank: New-farer Joined: 8/23/2013 Posts: 34
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Gordon Gekko wrote:Mike Ock wrote:Yes, sales tax, nhif, nssf, withholding tax and any other industry specific tax. Your lies spoil your point. NHIF isn't a tax, its insurance. NSSF isn't a tax, its a saving. Lets agree what a tax is. My understanding of tax is money taken from my earned income by the government or its bodies and its taken before my income is handed over to me and its taken by force. I have no option. Pay or go to jail. Whatever you call it, PAYE, NSSF, NHIF its still deducted from gross income and you have no choice in the matter. You cant say this month ni kunoma sitaki kutoa NSSF. So by my layman understanding NHIF and the rest are taxes.
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Rank: Veteran Joined: 11/15/2013 Posts: 1,977 Location: Here
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timbosho wrote:Gordon Gekko wrote:Mike Ock wrote:Yes, sales tax, nhif, nssf, withholding tax and any other industry specific tax. Your lies spoil your point. NHIF isn't a tax, its insurance. NSSF isn't a tax, its a saving. Lets agree what a tax is. My understanding of tax is money taken from my earned income by the government or its bodies and its taken before my income is handed over to me and its taken by force. I have no option. Pay or go to jail. Whatever you call it, PAYE, NSSF, NHIF its still deducted from gross income and you have no choice in the matter. You cant say this month ni kunoma sitaki kutoa NSSF. So by my layman understanding NHIF and the rest are taxes.  This isn't layman but Kuria,Aladwa,Muthama &Duale like thinking. Tax goes to gvt and you can't utilize it personally. Nssf , nhif are mandatory contributions which you utilize (personally) use when sick and on retirement. Made mandatory to assist you! Civic education is far below in Kenyan society with "educated fools" Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
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Rank: Veteran Joined: 8/25/2012 Posts: 1,826
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Boris Boyka wrote:timbosho wrote:Gordon Gekko wrote:Mike Ock wrote:Yes, sales tax, nhif, nssf, withholding tax and any other industry specific tax. Your lies spoil your point. NHIF isn't a tax, its insurance. NSSF isn't a tax, its a saving. Lets agree what a tax is. My understanding of tax is money taken from my earned income by the government or its bodies and its taken before my income is handed over to me and its taken by force. I have no option. Pay or go to jail. Whatever you call it, PAYE, NSSF, NHIF its still deducted from gross income and you have no choice in the matter. You cant say this month ni kunoma sitaki kutoa NSSF. So by my layman understanding NHIF and the rest are taxes. This isn't layman but Kuria,Aladwa,Muthama &Duale like thinking. Tax goes to gvt and you can't utilize it personally. Nssf , nhif are mandatory contributions which you utilize (personally) use when sick and on retirement. Made mandatory to assist you! Civic education is far below in Kenyan society with "educated fools" NSSF,NHIF = tax, where did that one come from. What next, school fees is tax.
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Wazua
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KRA's housing tax amnesty, and my choice to ignore it.
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