Wazua
»
Investor
»
Economy
»
KRA TAX Refunds.
Rank: New-farer Joined: 9/8/2018 Posts: 24
|
Has anyone here, ever gotten TAX refunds after filing their annual Individual Income Taxes, and what is the process?
|
|
|
Rank: Elder Joined: 3/2/2009 Posts: 26,325 Location: Masada
|
Never,or either anyone I know of! It's an impossibility. Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
|
|
|
Rank: Member Joined: 10/29/2007 Posts: 76
|
It is difficult and extremely risky but not impossible. Are you sure that your books are 100% accurate. Implying not only the figures but procedures? DO you withhold tax on your consultants? DO you issue ETRs if you are VAT registered? Have you been consistent with filing and payment of all taxes? Hire a tax auditor before you embark on this process. KRA will charge you twice the refund requested if they find that you did not deserve it! I mean if you are asking Kshs. 100,000 and they carry out audit and find out that you actually owe them 10,000, they will charge you double of Kshs. 100,000 and then proceed to make a demand of the 10,000 due plus penalties and interests!!!
|
|
|
Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
|
As a tax and legal professional, I got many refunds for my clients. Refunds are as as matter of practice offset against past and future tax liabilities. In other words, if a refund is approved you don't get cash but a credit against tax liabilities. Sparkly +254708733938 Life is short. Live passionately.
|
|
|
Rank: Member Joined: 7/1/2009 Posts: 247
|
sparkly wrote:As a tax and legal professional, I got many refunds for my clients. Refunds are as as matter of practice offset against past and future tax liabilities. In other words, if a refund is approved you don't get cash but a credit against tax liabilities. Sparkly +254708733938
Spot on, you get tax credits for VAT. For Income Tax (sole proprietorship), if your Advance Taxes exceed tax due, iTax rejects your return, forcing you to adjust the accounts to reflect no Income Tax overpayment. If you don't make Advance Taxes (quarterly), iTax penalizes you. @Sparkly: bold move, coming out in the open (tel contact). People use Mpesa to get your real name.
|
|
|
Rank: Chief Joined: 1/3/2007 Posts: 18,057 Location: Nairobi
|
Monk wrote:sparkly wrote:As a tax and legal professional, I got many refunds for my clients. Refunds are as as matter of practice offset against past and future tax liabilities. In other words, if a refund is approved you don't get cash but a credit against tax liabilities. Sparkly +254708733938
Spot on, you get tax credits for VAT. For Income Tax (sole proprietorship), if your Advance Taxes exceed tax due, iTax rejects your return, forcing you to adjust the accounts to reflect no Income Tax overpayment. If you don't make Advance Taxes (quarterly), iTax penalizes you. @Sparkly: bold move, coming out in the open (tel contact). People use Mpesa to get your real name. I would rather pay a small penalty than willingly pay more in Advance Taxes and eat the loss! Psychological. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
|
|
|
Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
|
VituVingiSana wrote:Monk wrote:sparkly wrote:As a tax and legal professional, I got many refunds for my clients. Refunds are as as matter of practice offset against past and future tax liabilities. In other words, if a refund is approved you don't get cash but a credit against tax liabilities. Sparkly +254708733938
Spot on, you get tax credits for VAT. For Income Tax (sole proprietorship), if your Advance Taxes exceed tax due, iTax rejects your return, forcing you to adjust the accounts to reflect no Income Tax overpayment. If you don't make Advance Taxes (quarterly), iTax penalizes you. @Sparkly: bold move, coming out in the open (tel contact). People use Mpesa to get your real name. I would rather pay a small penalty than willingly pay more in Advance Taxes and eat the loss! Psychological. Tax refund is like money in the bank, you can offset against any of your tax liabilities. Tax credit is on account basis. You Can only offset against the relevant tax i.e. VAT, Income Tax, Excise or Customs (Limited) Life is short. Live passionately.
|
|
|
Rank: Member Joined: 7/1/2009 Posts: 247
|
VituVingiSana wrote:Monk wrote:sparkly wrote:As a tax and legal professional, I got many refunds for my clients. Refunds are as as matter of practice offset against past and future tax liabilities. In other words, if a refund is approved you don't get cash but a credit against tax liabilities. Sparkly +254708733938
Spot on, you get tax credits for VAT. For Income Tax (sole proprietorship), if your Advance Taxes exceed tax due, iTax rejects your return, forcing you to adjust the accounts to reflect no Income Tax overpayment. If you don't make Advance Taxes (quarterly), iTax penalizes you. @Sparkly: bold move, coming out in the open (tel contact). People use Mpesa to get your real name. I would rather pay a small penalty than willingly pay more in Advance Taxes and eat the loss! Psychological. KRA requires businesses to pay installment tax (in advance) in 4 quarters. Amounts to be paid are based on the previous year's profit. If you are in a business with wildly erratic earnings, that's when you can get into over-payment situations, unless you ignore the law and incur penalties instead. For Limited liability entities, over-payments become Tax credits. For sole proprietorships, you lose. Last refund I got was during Moi's time. After Kibaki came in, that stopped...speaking from personal experience. Incidentally overpayments are sometimes as a result of Tax rebates in Morgage, or Pension/Insurance products you might have.
|
|
|
Rank: New-farer Joined: 9/8/2018 Posts: 24
|
Good people, thank you for educating me, still
What is a Tax Relief, and how does it work?
|
|
|
Wazua
»
Investor
»
Economy
»
KRA TAX Refunds.
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.
|