A little child narrates the World Cup final loss of Argentina to his teacher with joy and excitement 😂 😂 😂
“Argentina got all they wanted and still lost”
😭😭😭😭😭
KRA has graduated to a magician.
There was a real estate company called Bristol Estate limited. They excelled in flipping real estate.
By 2020, cash had dried up. They could not continue. Worse still, they owed KRA 475 million shillings.
The directors called for an emergency meeting. Then one director stood up and proposed. Let's dissolve the company.
They all said, perfect. Kill the company. Do it. Fast.
As they are doing all this, they are not aware of one dangerous sentence, sitting quietly in the companies act. It says:
• A company that has applied for dissolution must immediately give a copy of the notice to its creditors.
Why? Because the law gives creditors a chance to object before the company disappears. To protect themselves from losses.
Bristol quietly dissolved the company. They never informed their hungriest creditor, KRA.
The clock started ticking. Bristol tax returns stopped hitting KRA servers. KRA became suspicious.
KRA called the company. No answer. Eventually they reached one of the directors.
The greetings were warm. Until the caller said: This is KRA.
The director immediately switched to his Italiano: Fratello KRA, non ti capisco.
KRA replied: Hizo ni gani tena umeanza bro? We were talking just fine. Let's continue in English.
The director insisted: Non ti capisco.
KRA ignored the drama: We want our 475 million that your company owes us.
Director responded. Which company? We closed it years ago. Didn't you read the Kenya Gazette?
KRA asked: What are you saying? How can you close with our money? 475 million? Aje?
KRA rushed to the gazette. It was true. Bristol Estate Ltd had officially ceased to exist.
KRA retreated to Times Tower and embarked on a fault finding mission.
How can a company die with Caesars money?
In 2023, KRA remembered that one dangerous sentence. You remember it?
• A company applying for dissolution must notify its creditors.
KRA had never received that notice.
They immediately ran to court.
They argued: My lord, we were owed 475 million. We were a legit creditor. Bristol could not lawfully dissolve itself without notifying us. Please resurrect it.
The court agreed. The company had been dissolved through a defective process.
The judge ordered the company registrar to bring Bristol Estate Ltd back from the dead.
Not so it could sell houses. But so KRA could collect its 475 million in taxes.
Case closed.
Lessons.
- Closing a company does not automatically erase its tax debts.
- Before dissolving a company, notify all creditors. Including the hungriest creditor of them all, KRA.
- If the dissolution process is defective, the court can resurrect the company.