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What should individuals and corporates put in mind to mitigate their tax exposure or avoid being taxed unfairly?

      

What should individuals and corporates put in mind to mitigate their tax exposure or avoid being taxed unfairly?

  

Answers


Wilfred
i. Keeping complete and accurate records
Proper record keeping enables individuals and companies to support allowable deductions from their gross income. Accurate records will help in the event of tax form their gross income. Accurate records will also help in the event of tax audit and other proceedings against the tax payable.

ii. Getting timely and competent tax advice
Working with a competent tax consultant enables individuals and corporate entities to conduct their affairs in compliance with existing laws.

iii. Challenging tax assessment in legal tribunals
The tax statutes provide avenues for individuals and companies to challenge tax assessment made upon them by tax authorities. Further, tax demands can be challenged in courts an example of the latter is the recent successful judicial review application brought by a beverage company against the Kenya Revenue Authority on an assessment and demand on the company for excise, VAT and income taxes accumulating to about 1.1 billion

iv. Compliance
Tax payers can avoid exposure to tax programs such as stiff penalties, interests, possible shut down of business, distraction from usual activities etc. by complying with established laws and requirements. However it is illegal to arrange one’s affairs in such a manner as to minimize their tax burden
Wilfykil answered the question on February 25, 2019 at 12:26


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