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Advice on Tax Compliance certificate
kachero
#1 Posted : Thursday, November 03, 2011 4:06:02 PM
Rank: Member


Joined: 9/12/2006
Posts: 42
Advice on KRA VAT RETURNS-Tax Compliance certificate

Hi good people.I'm seeking your advice on matters that i got with KRA. Around two years ago, we incorporated a limited company and then five months down the line we registered for a company PIN and VAT Tax obligation. The company has not been in operation (in the real sense, we were meant to look for tenders supply deals, which we are yet to clinch) but fortnight ago things have started to look bright.Now the dilemma is in acquiring the TAX COMPLIANCE CERTIFICATE!

1.Now that the company has not filed the zero returns (No any business made so far), is it possible to obtain the TCC without the 10K per month fine since registration?

2.Is there a way that a limited company can denounce the VAT obligation(By the way-filling was done thru a cyber guy who assumed we needed or rather every company must do VAT) and still get the TCC?

3.Can we file the zero returns for the last 15 months, Now?

4.Any other information will be highly appreciated.
coco
#2 Posted : Thursday, November 03, 2011 4:11:57 PM
Rank: Member


Joined: 5/13/2009
Posts: 24
Yes. I am also facing the same dilemma. Could someone kindly enlighten us how to get out of this mess?
mnjoro
#3 Posted : Thursday, November 03, 2011 4:16:32 PM
Rank: Member


Joined: 2/21/2009
Posts: 573
So long as you registered for VAT,you will have to pay the 10K monthly penalty fee.Having done no business does not exempt you from doing nil returns.
McReggae
#4 Posted : Thursday, November 03, 2011 4:24:56 PM
Rank: Elder


Joined: 6/17/2008
Posts: 23,365
Location: Nairobi
Register another company!!!
..."Wewe ni mtu mdogo sana....na mwenye amekuandika pia ni mtu mdogo sana!".
mnjoro
#5 Posted : Thursday, November 03, 2011 4:44:51 PM
Rank: Member


Joined: 2/21/2009
Posts: 573
McReggae wrote:
Register another company!!!

Would advise not to do that cause their personal PIN s are already in the company database.Let me get a friend who was in such a situation will advise later.
Post your email.
coco
#6 Posted : Thursday, November 03, 2011 4:56:30 PM
Rank: Member


Joined: 5/13/2009
Posts: 24
gmubz@yahoo.com Leta hizo tips huku
Lolest!
#7 Posted : Thursday, November 03, 2011 5:20:52 PM
Rank: Elder


Joined: 3/18/2011
Posts: 12,069
Location: Kianjokoma
What if you register a company like Mugambi Imanyara's ODM? No PIN reg etc?

BTW, didn't the govt stop registering PIN and VAT separately?
Laughing out loudly smile Applause d'oh! Sad Drool Liar Shame on you Pray
Tommy
#8 Posted : Thursday, November 03, 2011 5:59:11 PM
Rank: Veteran


Joined: 12/9/2010
Posts: 894
Location: Nairobi
coco wrote:
gmubz@yahoo.com Leta hizo tips huku

Too bad u didnt get somebody to advice u in gud time. Tax comp has become a nightmare of late. Pls note that compliance is not all about vat but also company's income taxt n director also. Will mail u 2morrow on ur mail on the same. @Laughing out loudly, we just have the pin for all obligations
Don't wait for the Last Judgment. It happens every day. ~Albert Camus, The Fall, 1956
Alo
#9 Posted : Friday, November 04, 2011 11:56:53 AM
Rank: Member


Joined: 6/23/2010
Posts: 127
Location: Msa
i wish to be enlightened too. Mine is a partnership not a company. email wawushrich@gmail.com
"A woman's heart should be so hidden in Christ that a man should have to seek Him first to find her."
kachero
#10 Posted : Friday, November 04, 2011 12:13:03 PM
Rank: Member


Joined: 9/12/2006
Posts: 42
at Mnjoro and Tommy please drop me the same at kingpostloc13@yahoo.com

Tommy
#11 Posted: : Friday, November 04, 2011 3:55:56 PM
Rank: Veteran


Joined: 12/9/2010
Posts: 894
Location: Nairobi
@kachero,Alo and coco, i have sent you a mail.
Don't wait for the Last Judgment. It happens every day. ~Albert Camus, The Fall, 1956
Gordon Gekko
#12 Posted : Friday, November 04, 2011 4:28:30 PM
Rank: Elder


Joined: 5/27/2008
Posts: 3,760
McReggae wrote:
Register another company!!!


There is nothing to stop you from registering another company - there is no law that says you can only have one company.

However, the penalties accrued on your existing company for non filing of retums will never be extinguished until you discuss the matter with KRA and plead your case of ignorance, which is not a defence.

You can apply for deregistration if you show that you are below the minimum threshold (ksh 5M) but this might jeopardice your business as some companies are comfortable dealing only with tax registered outfits.
Lolest!
#13 Posted : Friday, November 04, 2011 8:45:07 PM
Rank: Elder


Joined: 3/18/2011
Posts: 12,069
Location: Kianjokoma
But if I register a co. but fail to apply for PIN I will not need to file zero returns, right?
Laughing out loudly smile Applause d'oh! Sad Drool Liar Shame on you Pray
Tommy
#14 Posted : Friday, November 04, 2011 8:55:52 PM
Rank: Veteran


Joined: 12/9/2010
Posts: 894
Location: Nairobi
Lolest! wrote:
But if I register a co. but fail to apply for PIN I will not need to file zero returns, right?

Right
Don't wait for the Last Judgment. It happens every day. ~Albert Camus, The Fall, 1956
lexbengo
#15 Posted : Friday, November 04, 2011 9:09:00 PM
Rank: New-farer


Joined: 9/7/2011
Posts: 26
From my short experience running a business for 5 years, you can never arm twist the taxman. Just find out how much the penalties are and pay them.
Gordon Gekko
#16 Posted : Saturday, November 05, 2011 9:34:07 AM
Rank: Elder


Joined: 5/27/2008
Posts: 3,760
Tommy wrote:
Lolest! wrote:
But if I register a co. but fail to apply for PIN I will not need to file zero returns, right?

Right


Wrong. You register under the Co. act cap 486 that will require that the accounts are audited each year by a registered auditor. The auditor will not audit a company without a PIN as the risk could be him being deregistered. I believe it also the duty of the auditor to file the returns to KRA on your company's behalf.
Tommy
#17 Posted : Saturday, November 05, 2011 10:19:49 AM
Rank: Veteran


Joined: 12/9/2010
Posts: 894
Location: Nairobi
Gordon Gekko wrote:
Tommy wrote:
Lolest! wrote:
But if I register a co. but fail to apply for PIN I will not need to file zero returns, right?

Right


Wrong. You register under the Co. act cap 486 that will require that the accounts are audited each year by a registered auditor. The auditor will not audit a company without a PIN as the risk could be him being deregistered. I believe it also the duty of the auditor to file the returns to KRA on your company's behalf.

@GG, why do you say i am wrong, while you yourself contradicted yourself by saying that no auditor will audit your accounts if you have no pin. you want somebody to file returns without a pin? How? The tax filing obligation starts after you register the pin.
Don't wait for the Last Judgment. It happens every day. ~Albert Camus, The Fall, 1956
mukiha
#18 Posted : Sunday, November 06, 2011 9:54:41 PM
Rank: Elder


Joined: 6/27/2008
Posts: 4,114
kachero wrote:

Advice on KRA VAT RETURNS-Tax Compliance certificate
Hi good people.I'm seeking your advice on matters that i got with KRA. Around two years ago, we incorporated a limited company and then five months down the line we registered for a company PIN and VAT Tax obligation. The company has not been in operation (in the real sense, we were meant to look for tenders supply deals, which we are yet to clinch) but fortnight ago things have started to look bright.Now the dilemma is in acquiring the TAX COMPLIANCE CERTIFICATE!

1.Now that the company has not filed the zero returns (No any business made so far), is it possible to obtain the TCC without the 10K per month fine since registration?

2.Is there a way that a limited company can denounce the VAT obligation(By the way-filling was done thru a cyber guy who assumed we needed or rather every company must do VAT) and still get the TCC?

3.Can we file the zero returns for the last 15 months, Now?

4.Any other information will be highly appreciated.


@kachero; you have come to the moment of truth: you have to decide exactly what you want to do with this company of yours.

Is it a short-term thing that you are not so serious about or is a long-term venture that you are positioning to be you bread & butter provider now and retirement package later?

If it is the former, then dump it and register another one... but you MUST make plans for clearing ALL outstanding taxes and attendant penalties. You can do that slowly in the future.

If the latter, then you simply apply for TCC now and get ready to pay ALL outstanding taxes and attendant penalties right away.

Remember: only two thing are certain in life - death and taxes.

Even after you die, the taxman CAN attach you estate to clear any pending taxes!
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
sparkly
#19 Posted : Monday, November 07, 2011 4:46:20 PM
Rank: Elder


Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
@kachero if you have not been trading, you can apply to KRA to waive the penalties. You can also ask to be put on the dormant code for VAT.

If registered you must file the Nil return for corporation tax otherwise you pay 10,000.

Next time when registering for tax, choose the right obligations ie corporation, VAT, WHT, PAYE if applicable.

If you need help contact me at: sparkly99(at)ovi(dot)com
Life is short. Live passionately.
lexx
#20 Posted : Monday, October 14, 2013 11:23:30 AM
Rank: Member


Joined: 11/24/2009
Posts: 130
Does filing for returns apply to Registered Business names as well.
Is it only limited to corporates or it as well includes partnership businesses.
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