Corporate and personal tax compliance
Every Company, Trust, Partnership, Society and individuals with income whether taxable or exempt must register with the revenue office and be issued with a tax registration certificate (TIN). Meeting the tax reporting obligations is critical in managing business tax risks. Late returns and taxes in addition to reputational risks attract huge penalties, fines and interest. We offer the following income tax statutory reporting requirements.
- Preparation of the income tax computations in accordance with tax legislations;
- Preparation of the income tax returns and filing with the revenue office;
- Timely advise the tax amounts payable and due dates as well as assistance on tax remittances;
- pplication and processing of tax compliance certificates;
- Attending to queries that may be raised by the revenue office in relation to filed returns; and
- Registration of new companies with the revenue office (TIN registration).
Tax Representation Before Authorities
A business has been subjected to a revenue audit will in most cases confirm that the experience is not pleasant. It becomes more painful in cases where tax assessments are raised and followed by immediate demands. In cases of fraudulent trading activities criminal charges may be instituted. We are well equipped and prepared to walk our clients through the entire process while adhering to our professional standards. The entire process can be quite lengthy with some cases ending up in high court. Our strategy is to strive to resolve the cases at the early stages to avoid the protracted legal disputes that may be costly to clients.
As a general rule the income of an institution that is public in character and established for the purpose of the relief of poverty, distress of the public, or advancement of education or religion may be granted tax exemption but subject to satisfying some set conditions. An institution granted such exemption will not be liable to tax on all its incomes whatever the source. We have mustered the procedures necessary to successfully navigate this process which is available mainly to not-for – profit organizations.
Tax health checks
Tax is seldom straightforward. Tax regimes and compliance regulations change rapidly. The Revenue Authorities around the world are increasingly becoming aggressive as they seek to achieve and/or surpass their set revenue targets. In pursuit of this tax audits are now commonplace often resulting in backdated tax demands that may be significant- in many cases running into millions of shillings as evidenced by the numerous reported cases in the media. The risks lie in principal taxes, penalties, fines, interest and in some limited cases criminal prosecution for economic crimes. It is imperative therefore, that businesses should be proactive and take all the necessary steps to minimize non- compliance risks and tax exposures. Audits will normally fall into three categories:
- Compliance audits: are spot check reviews that take the shortest time. The review team will focus mainly on compliance with regard to returns filing and payments without much attention on how the figures were arrived at. The target records for inspections are not many and the exercise will last just a few days.
- Comprehensive in-depth audits: are reviews covering many tax heads and multiple issues recorded in the books of accounts. As the name suggests it involves a scrutiny in detail of all transactions to determine correctness or otherwise of the reported taxes. It calls for production of almost the entire records kept the business including director’s personal bank accounts. The review period may extend from a few weeks to several months.
- Investigative audits:Are audits conducted as a result of a report of unusual, suspicious or fraudulent activities.
- Establish any inherent tax risks through an in-depth and systematic review of your books of accounts;
- Establishing any risk of, and quantifying any potential back-taxes discovered during a review; and
- Providing advice on the mitigation and settlement of any such liabilities including engagement with the revenue office for a favourable settlement plan.
Employment and Expatriate Tax
Operating an international business requires an international and mobile workforce. We understand these challenges and are committed to providing you with effective solutions that are tailored to your circumstances. For employers, this may include strategies to manage an increased tax burden, pensions and health security compliance and planning. Our extensive experience and practical, timely advice includes the following expatriate tax services:
- Arranging personal consultations with international employees to explain the tax implications of their move;
- Structuring remuneration packages with a view to minimizing tax costs, including salary packaging for tax efficient fringe benefits;
- Advising on the level of acceptable remunerations and assistance in contract drafting;
- Adviser on labour laws;
- Preparing tax returns and related compliance services in the host country including registrations with the revenue office; and
- Advising on employer obligations in home and host countries for tax withholding tax and provisions relating to Double Tax Treaties.