KRA has been given a new weapon.
Tax all the money in bank and mpesa.
But do not be alarmed.
In simple terms.
Money entering your bank account is now presumed to be income.
Unless you can prove it is not.
Yes. Even if it’s “not business”.
For example
- Friends send you money to “hold”
- Chamas pass money through your account
- Your wife blesses your mpesa
- Someone refunds you cash
- You receive family support because you live in Nairobi
- You sell land, a car, or livestock
- Random deposits keep coming in
KRA’s question is simple:
“What is this money?”
And now YOU must explain.
What people wrongly assume
- “It’s my personal account”
- “It’s not profit”
- “KRA must prove it’s income”
Court said
Money in the bank = income by default
Burden of proof is on you
If you can’t explain = KRA can tax it
Result
- Unexplained deposits = taxable income
- Penalties & interest follow
- Maximum chest pains
Simple solution:
- Money in
- Explain it
- Or pay tax on it
Go to ChatGPT, upload a photo then Type.
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