Tax Blog

Micro, Small and Medium Enterprises or the hustlers’ nation as they call, it is a blessing to our generation but needs to be nurtured to the next level. The first step is formalizing the informal sector. Introduction of a tax that ensures that the sector also contributes in the national revenue kitty is an important...... Continue reading→

Modern day technology is a double edged sword to tax administrators. On the positive side we see digital technology as an enabler. With technology, it has become easier for tax payers to file tax returns, tax information is much more accessible, and tax gatherers have better tools of making surveillance over tax payers. Thus with...... Continue reading→

History tells us that every major war has triggered increased tax rates. Citizens through their commander-in-chief have to endorse the war. In so doing, they are voluntarily asking for higher taxes. If COVID-19 be a war to be fought, then the first reflex would be to raise taxes but wait a minute, this is not...... Continue reading→

The COVID-19 pandemic opens the opportunity to keep debating on whether to increase taxes again or to reduce them further. Dwelling so much on this topic will constraint our thoughts in the same box while not focusing on the real issue of revenue leakages. https://www.pd.co.ke/news/like-soldiers-taxpayers-critical-in-fighting-covid-19-41174/ Read More Continue reading→

The principle of equity is at the heart of public finance in any nation. In Kenya, equity in public finance is so important that it is enshrined in Chapter 12 of the constitution. As provided in article 201 (b) of the constitution, equity has two facets:… Read More Read More Continue reading→

How transfer pricing works- Head Office, parent company, Divisions, branches or subsidiaries of a firm trading amongst themselves will invariably set the prices at which goods and services will be exchanged. The prices need not be the same as the prevailing market prices since they are all members of the same group again transactions of...... Continue reading→

Corruption in Kenya While some level of graft exists in every country, Kenya’s case is major problem of Global concern. Corruption has deeply entrenched itself in the moral fabric of the society. According to Wrong (2014) “everyone in Kenya is corrupt including grandmothers.  Kenya loses over 30% if it’s annual budget to the vice well...... Continue reading→

Layman’s definition of tax avoidance is reducing a tax payer’s liability without breaking the law. This is the most likely definition availed by search engines over the internet, you can try. Thus tax avoidance sounds legal, in fact the right thing to encourage taxpayers to do. Proponents of this argument quickly contrast tax avoidance with...... Continue reading→