- Please find attached organized documents: Be sure to file them and not pile them in a corner shelf somewhere. Ensure
- They are not torn and better still in soft copy format where possible
- They are not arbitrary figures but actually available for example credit cards statements, mileage records, expense receipts etc.
- They have a note describing their nature specifically the receipts and
- Yes, they relate to the current year
- Per our conversation please provide receipts for the donations to your non-profit/charitable organizations: Donations are just a nice thing we all do. Who needs to brag about it, after all? Well, for these donations to be tax deductible the burden of proof is on you and the best way to guarantee their tax deductibility is to donate to recognised and registered charitable entities such as foundations or charitable organisations.
- Sorry for the late reply is unacceptable while paying The Revenue Authority: It will not do away with their gall to penalize you even after only one missed deadline!
- I hope you are doing well my accountant: Despite the daylight robbery that is their fee per hour to add up numbers – it is accrual world and they will get your books in order to save you the last minute hustle. Tax practices are a daily exercise and involve more than end of financial year tax position review.
- I look forward to your positive feedback retirement: Contributions to a registered retirement benefits scheme are tax deductible to a maximum of Kes 20000 p.m. or Kes 240000 p.a. With the first Kes 600000 of lump sum upon withdrawal of benefits and Kes 25000 monthly pension received from such scheme tax free.
- Thank you in advance for the timely remittance and settlement of Tax Invoices: This allows for Cross Matching of Invoices in iTax during VAT Auto Assessment (VAA). VAA is a system based solution that:
- Detects inconsistencies between purchase and sales invoices which have been declared in the VAT returns and notifies the inconsistencies to both the buyer and the seller and
- Generates auto assessments on the buyer on any outstanding inconsistencies which affected taxpayers are required to resolve within a given period from the date of system notification
- Best tax plan: Taxes are enforced, not voluntary, contributions so employ strategies to:
- Obtain tax deductions such as capital deductions
- Obtain tax offsets (credits)
- Move income away from an entity paying a high rate of tax to an entity paying a lower rate of tax.
- Move profits and losses between tax years, either to defer tax or take advantage of a more favourable tax rate
- Reduce the amount of assessable capital gains from an investment sold at a profit
This blog is brought to you by the InVhestia Accounts Department
