🅱️ac2baq™🔁🇰🇪

I love puns🙂|| a free thinker✌️||tweeting to see who else views the world like I do

[CPA Wachira Joseph @WashiraX]

KRA tried to tax the same money twice.

There is a company called Equator Bottlers. They cook and sell sodas in Kisumu Dala.

I went there to apply for an attachment in April 2015.
Nikakaa kwa reception nimengojea waniulize nakunywaga soda gani. Wakaninyima. Imagine.

As Equator was busy cooking sodas. KRA was busy cooking their tax bill.

When KRA was done, what came out was a maddening tax bill.

Between 2019 and 2022, Equator hired technicians and IT gurus from South Africa to automate its soda making machines.

Equator paid them in full. They packed their bags and went back home.

Then KRA audited Equator. They looked at the payments and announced.

- Guys, you should have withheld tax before paying the South Africans. Instead, you let them carry all the money. Now what will Kenya eat?
You must now pay that money from your pockets.

Equator Bottlers fired back:

- True, we did not withhold tax.
But the South Africans have already paid tax on that income in South Africa.
If Kenya taxes the same income again, that would be double taxation. And Kenya and South Africa have a tax treaty that exists to stop exactly that.

KRA became even more firm: We tupatieni pesa. We want our taxes.

As the arguments intensified, shrewd accountants at Equator remembered one hidden sentence inside the Kenya–South Africa tax treaty.

It says:

- If a taxpayer believes the same income is being taxed in both countries, they can ask either country's tax authority to talk to the other country's tax authority and agree on who should tax it.

Think of it as. Nyinyi kaisari endeni muongee. Mkisikilizana mutaniambia nimlipe nani.

Equator quickly told the South African suppliers to approach the South African Revenue Service (SARS). And complain about double taxation.

They did. And SARS agreed there was a genuine issue and formally opened discussions with KRA.

But while the two tax authorities were talking, KRA sent a maddening tax demand to Equator.

Equator ran to court. It argued that,

- KRA was at the talking stage with SARS.
- KRA should first complete the discussions with SARS, decide which country had the right to tax the income, and only then demand tax, if any was still payable.

- Equator prayed the court to pause the case until the two revenue authorities reached an agreement.

KRA fired back and argued that:

- Equator was simply buying time and delaying the case.

- KRA also argued that Equator, as the taxpayer, should have approached KRA directly to initiate the Mutual Agreement Procedure instead of going through its South African supplier.

- For that reason, KRA urged the court not to pause but proceed with the case and deliver its judgment.

The tax tribunal looked at the case. And noted that,

- a genuine Mutual Agreement Procedure was already underway because KRA had agreed and started talking to SARS.

The Tribunal paused the case and ruled that:

- Equator & KRA and SARS should continue talking under the Mutual Agreement Procedure for the next four months.

If they agree, well and good.

If they do not agree, the matter will go for full court hearing and judgement.

Lessons.

• Kenya's tax treaties are real. If you're facing double taxation, use them.

• The Mutual Agreement Procedure is simply two tax authorities talking so the taxpayer doesn't pay tax twice.

• Structure your cross border payments carefully. Or KRA will structure them for you.

[🐉🏍️ @Kamau266]

Planned kids in kenya wanakuanga a scam.They don't do anything to continue their parents legacy, but just overgrow in their compound doing nothing but alcohol,babymamas and owning a small loud car .The next generation tena inaanza from scratch

[somto @isitsomto]

So you hate waffles?

[j♡ ̆̈ •. @reidrexia]

consciously getting 10k steps and unconsciously getting 10k steps is two different ballparks i swear

[𝐌𝐀𝐋𝐈𝐊 @TheMahleek]

Keyboard bra, just so she could be anyone’s Type.

[Young⁠ @Brayohki]

kuna wasee hata wakidedi watakua wameenjoy life and have lived it. at my age kuna msee ametravel countries 20+, drove their dream car na hata akadate a cold hearted kikuyu babe.
it'd be so unfair for God to take a nigga like me who haven't experienced anything good about life

[kayz3d @kay_z67]

when you’re trying to bounce back in life, then your phone got stolen.

[Jumuiyan @Jumuiyan]

Shiquo ni mtoto wa Gakuyo who conned people in the real estate sector. Mtoto wa nyoka ni....

[Sly 🔎 @ykslyy]

"Go tell your King what you saw here today...”

[Kijana ya Misa🇰🇪 @kijana_misa]

"Nasikia hata day school zinachoma buana, sisi ndo waoga tu."

[Maung Thuta @CypressDahlia]

The idea of sleep is so goofy. It's like something you'd write as an overly-contrived weakness for a fictional character. Oh yeah they have to lie down and close their eyes and go unconscious for at least 6 hours to recharge. Sure.

[Z H A N É @ZhaneJahnice]

I hate how Twitter mistakes curiosity for obsession. Interact with one topic once, and suddenly your entire timeline is dedicated to it.

[Pizza @number_pizza111]

This is pretty impressive. I don’t get what her problem is.

[MOSET @KeKirwa]

Wanaume huwa hatuelewi anything about gifts and presents. Mimi bibi ndio hunipea ideas. I remember a friend of mine who once bought a newborn baby a bicycle🤣🤣

[🅱️ac2baq™🔁🇰🇪 @bac2baq]

Being called 'a nice guy' by a lady is not a compliment btw. 💀💀😭

[floptok @_eoantao]

acabei de descobrir que não importa quão cedo eu vá para a cama eu simplesmente não quero ir trabalhar

[WARÚHIÚ @kamauwaruhiu]

Schools are more worried of students sneaking into dormitories to sleep than their safety.

[🅱️ac2baq™🔁🇰🇪 @bac2baq]

Sai ata mechi raundi ni moja. WANTAM it is😒😒