Charles Njane

Entrepreneur and Business consultant

[Charles Njane @WainainaCharles]

Your numbers tell a story:
• Revenue = What came in
• Costs = What went out
• Cash flow = What you can actually afford
Profit is an opinion, but cash is reality.

What are your numbers telling you about your business?
Tax advisory by Maj Advisory LLP | https://t.co/gltUDbDn15

[Charles Njane @WainainaCharles]

Who bears the burden of proof in a tax dispute?

In KRA v Man Diesel & Turbo SE, the High Court considered the distinction between the legal and evidential burdens in tax disputes.

The taxpayer generally carries the legal burden of showing that a tax decision is incorrect.

[Charles Njane @WainainaCharles]

2/2 Reconcile these 5 records every single month:
1️⃣ Sales (Invoices, receipts, reports)
2️⃣ Bank Statements (Cash inflows & outflows)
3️⃣ Purchases & Expenses (Invoices & supporting docs) 4️⃣ Tax Records (Returns & payment receipts)
5️⃣ Accounting Ledgers & Reports

[Charles Njane @WainainaCharles]

1/2 Most unexpected tax liabilities stem from poor record hygiene, not deliberate non-compliance. Reconstructing records when KRA comes knocking is both costly and stressful.

Monthly reconciliation keeps your business permanently audit-ready 🧵👇

[Charles Njane @WainainaCharles]

In tax disputes, stating "the assessment is wrong" isn't a legal defense.

Court precedent (Ushindi Ltd v KRA) shows you must prove:
• Disputed amount
• Exact transaction & tax head
• Verifiable records
• Legal basis

Substance beats slogans every time.
#TaxGovernance

[Charles Njane @WainainaCharles]

Confusing a Tax Audit with a Tax Assessment can cost your business.

• Tax Audit: Reviewing your records & transactions.
• Tax Assessment: Formal determination of tax payable.

Knowing the difference dictates your strategy and statutory deadlines.

#TaxAdvisory #TaxCompliance

[Charles Njane @WainainaCharles]

3/3 💡 The Njane Perspective:

Statutory timelines work both ways. If the revenue authority fails to issue a determination within the legal window, the law self-executes in favor of the taxpayer.

Track your audit clocks. #Accounting #KenyaBusiness #TaxAlert

[Charles Njane @WainainaCharles]

Can KRA reject your VAT refund after missing the statutory deadline?

In Ocean Network Express v KRA (Aug 2026), the Tax Appeals Tribunal ruled that KRA's 120-day refund audit window under Sec 47 TPA is mandatory.

Miss the deadline = Deemed Approval by law. #TaxGovernance

[Charles Njane @WainainaCharles]

2/3 KRA rejected KES 6.8M in VAT refunds after 370+ days, claiming the taxpayer was "just an agent."

The TAT struck it down: • A missed deadline makes KRA functus officio. • Private agency reimbursement contracts cannot override statutory input VAT rights under Sec 17 VAT Act.

[Charles Njane @WainainaCharles]

Tax Precedent #01

In KRA v Maluki Kitili Mwendwa [2021] KEHC 4148 (KLR), the High Court affirmed that a taxpayer bears the burden of proving an assessment incorrect.

But the evidential burden can shift once credible evidence is produced.

Challenge assessments with evidence!

[Charles Njane @WainainaCharles]

A Tax Audit is NOT a Tax Assessment.

• Tax Audit = Examining your records & affairs.
• Tax Assessment = Determining tax amount payable.

Knowing which stage you're in dictates your evidence, response, and strategy.

Identify the process before taking action.

#TaxGovernance

[Charles Njane @WainainaCharles]

KRA has raised an assessment. What next?

Don't panic. Don't ignore it.

Read it. Understand the basis. Review your records. Check the deadline. Then determine your response.

A tax assessment requires a structured response—not a rushed reaction.

#TheNjanePerspective

[Charles Njane @WainainaCharles]

Tax disputes aren't won on arguments—they're won on evidence.

Without proof, your claim fails under audit:
• Expense → Invoice
• Transaction → Contract
• Amount → Payment record
• Tax treatment → Bank statement

A tax position is only as strong as its proof.

[Charles Njane @WainainaCharles]

Did you file your taxes? Now ask: can you support what you filed?

Keep five records organised: financial statements, sales & purchase records, bank/payment records, tax returns & payments, and supporting documents.

Good tax compliance goes beyond filing.

#TaxPerspective

[Charles Njane @WainainaCharles]

Policies don't build ethical organizations. Systems do.
Iss 2 of #TheNjaneFramework explores five governance practices every organization should assess:
• Clear policies
• Timely reporting
• Conflict disclosure
• Whistleblower protection
• Independent review
#NjaneGovernance

[Charles Njane @WainainaCharles]

Governance is most effective when responsibilities are clearly defined.

Board → Strategy
Committee → Oversight
Executive → Execution
Operational → Implementation

Clear accountability strengthens decision-making, risk management, and organizational performance.

[Charles Njane @WainainaCharles]

Corporate governance isn't just about compliance.

It's a growth strategy.

Businesses with clear accountability, strong oversight and sound decision-making are better positioned to manage risk, attract investment and grow sustainably.

Good governance builds confidence.

[Charles Njane @WainainaCharles]

📍BNI East Africa Convention 2026

A valuable opportunity to learn from business leaders, build meaningful relationships and exchange ideas on sustainable business growth.

Growth is accelerated by learning, collaboration and strong networks.

#BNI #Leadership #BusinessGrowth

[Charles Njane @WainainaCharles]

Every contract creates financial, legal and operational obligations.

Before signing, ask:

✔ Commercial terms
✔ Legal compliance
✔ Financial impact
✔ Risk allocation
✔ Performance
✔ Governance
Good contracts protect businesses before disputes arise.

#CorporateGovernance