FRM2011 wrote:This is free advice to all Juakali guys. A client of mine is in deep trouble with KRA. He fired one of his staff in January and the separation was quite acrimonious. Almost got physical.
The ex-staff kept calling the old man over some 90K he insisted the company owed him but my client refused to negotiate.
Being a small company, the staff knows what goes on. Bank accounts, sales, profit, expenses e.t.c. He gave all this info to KRA. The taxman decided to conduct an audit for 5 years. The tax arrears being demanded is almost 10M. I have met those guys and it seems they are under extreme pressure to collect as much as they can.
Only way for my client to survive is to sell a property. And all because of 90K.
Right now it's either you play clean or run your financial matters with utmost secrecy.
To make matters worse, if the mzee pays say 5M, his ex-staff receives 250K. Kra has a whistle-blower reward scheme at 5%.
Let that message go out
loud and clear from the kiosks to the small businesses to the SMEs and to the biggest corporates! Playing clean, doing the right thing, avoiding corruption is the only way to sleep soundly at night in Kenya today! We are tired of looters, corruption mandarins and dishonest businesspeople!