i)
The income Tax Act and the VAT Act and Custom Excise Act give the commissioner general
certain powers to undertake investigations and recover any unpaid tax.
- The commissioner general has the power to enter premises, search for and be provided with records and search any other information where a suspected case of evasion arises.
- It‘s an offense to obstruct an officer of the revenue authority undertaking investigations or other assessments duties.
- However, such investigations should be undertaken during normal working hours.
- Investigations are not restricted to the managers and may be extended to the owners for instance where the owner withdraws variable goods from the business for own consumption.
- The officers in this case had the right to question OjwangMatata.
- The taxpayers have a right to demand identification for a tax officer
ii) Extent of OjwangMatata‘s liability.
- As a sole proprietor, he has unlimited liability on his personal and business debts.
- The revenue authority may recover the tax by distrait whereby the commissioner general may engage the services of a licensed broker to sell OjwangMatata‘s goods by public auction
(ii) Application for deregistration.
Circumstances under which a tax payer may be de-registered from VAT are when:
- A registered person or business ceases to make taxable supplies as specified in the VAT Act (Cap 476)
- The taxpayer becomes incapacitated
- The taxpayer becomes insolvent
- The value of taxable supplies fall below the statutory threshold of Sh. 5M.
- There is a change of business name.
- The taxpayer dies.
- If the tax payer register for TOT.
Wilfykil answered the question on February 15, 2019 at 08:28
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