I think one of the greatest risks for investors, business people is taxation. We should have a group for Tax discussions, issues and advice. Issues to do with tax audits, customs duty etc...

I have seen queries on customs duty especially from Chinese imports that seem to be on the spotlight by KRA customs offices.

Now for those intending to build, especially commercial buildings, note that KRA income tax officers are going round building sites and taking down approval numbers. With this, they then go to county planning offices and retrieve your PIN. With this they produce your tax returns and determine if you are compliant or not. If you do not file properly or do NIL returns, they summon you with printed bank statements (which they already have) and extort money from you! Beware

"Extorting" implies they try to collect a bribe. Are you saying it does not happen?

I also would like us to discuss the various known ways of tax evasion that are not wise to engage in for us at all. For example, why is that if you import goods from China, one pays for courier charges by weight and not by value where goods are ferried via Eldoret Airport and collected in Eastleigh? Is this not tax evasion? Isn't it a big risk to engage in it since IDF documents and proof of taxes paid is not available?

No. Tax avoidance is legal and fully auditable with supporting documents. That means that a tax investigator can randomly pick an item from your shop and with the serial numbers, get supporting import documents for it. The Eldoret route must be an illegal activity and therefore tax evasion. Somebody should clarify.

Thank you Bennry. However, on the issue of imports from China through Eldoret to Eastleigh, what are your comments on this?