The National Assembly's Finance & Planning Committee has kicked off public hearings for Finance Bill 2025.
What are we seeing by way of submissions?
A 🧵
Some pretty solid submissions have been made by both Law Society of Kenya (@LawSocietyofKe) & Anjarwalla & Khanna (@alnafrica)
As expected, both have taken issue with Finance Bill 2025's proposed deletion of Section 42(14)(e) of the Tax Procedures Act
· I am fully with both on this proposal. In my view, it is possibly the biggest issue with Finance Bill 2025
· Effectively, KRA will be empowered to issue agency notices despite taxpayers having lodged appeals on the same
· This will significantly disadvantage taxpayers who have sought appeal on amounts demanded following audits by the Authority
· They want this proposal wholly rejected
Both have taken issue with the proposed deletion of Sec59A(1B) of the Tax Procedures Act.
· The import here is that the deletion would allow KRA to automatically access trade secrets & personal data information for integration into the electronic tax management system
· Both want this proposal to be dropped in its entirety
· I fully agree with this submission
FYI, at the #BudgetSummit2025 convened by @NationMediaGrp on May 20th,
· I challenged the National Treasury's Director General for Budget, Fiscal & Economic Affairs about the proposal to grant KRA unfettered access to trade secrets & personal data
· He argues that the government will take reasonable care to ensure that this does not violate provisions of the Data Protection Act
Delighted to see Anjarwalla & Khanna (@alnafrica) take issue with the proposal to grant KRA clawback powers in the event that goods sourced under VAT Exempt/Zero-rated status aren't used for the intended purpose.
They are asking the there be accompanying regulations to operationalise this provision.
Both have taken issue with the proposal to increase the number of days for KRA to ascertain a tax refund from 90 to 120 days.
· The underlying argument here, & rightly so, is that this proposal will adversely affect the cashflow position of businesses that are awaiting refunds from the Authority.
· I like that both went further & raised the issue around the proposed deletion of Sec77(2) of the Tax Procedures Act which seeks to exclude weekends & public holidays in computation of statutory time for lodging Appeals and objections
Anjarwalla & Khanna (@alnafrica) has taken issue with the proposal to restrict carryover losses to 5 years.
· I note, however, that whereas they are taking issue with it, what they are calling for is a grandfathering provision for existing tax losses. So they are not saying the provision should be deleted entirely
· What essentially they are saying is that this provision needs a cut off date such that businesses with existing tax losses continue to enjoy an indefinite horizon for carryover
· I disagree with @alnafrica's submission on this one & I agree with the proposal by the Law Society of Kenya's (@LawSocietyofKe) that this proposal needs to be done away with entirely
I am a little surprised by the Law Society of Kenya's (@LawSocietyofKe) submission objecting the proposal to remove the kes 5.0 million per annum turnover as the threshold for Significant Economic Presence Tax.
· I believe that threshold should go as proposed in Finance Bill 2025
· If you consider the entities being targeted by this tax, what is Kes 5.0 million in turnover to them?
Anjarwalla & Khanna (@alnafrica) has taken issue with the radical clean up of the 1st Schedule (Exempt Status) & 2nd Schedule (Zero Rated status) of the VAT Act.
Taking on the clean of the VAT Act is going to be a long shot.
We discussed this matter at the #BudgetSummit2025 convened by @NationMediaGrp & the National Treasury argues that the reason for this clean up is that there's been abuse of the preferential status.
National Treasury argues that 30.0% of all VAT refund claims end up as invalid.
Both have taken issue with the proposal to do away with higher investment deduction allowance (150.0%) for investments outside Nairobi & Mombasa.
Finally, if you wish to submit your comments & are not sure where to start with Finance Bill 2025, see 🧵 below
Folks,
The National Assembly's Finance & Planning Committee has kicked off public hearings for Finance Bill 2025.
What are we seeing by way of submissions?
A 🧵Some pretty solid submissions have been made by both Law Society of Kenya (@LawSocietyofKe) & Anjarwalla & Khanna (@alnafrica)As expected, both have taken issue with Finance Bill 2025's proposed deletion of Section 42(14)(e) of the Tax Procedures Act
· I am fully with both on this proposal. In my view, it is possibly the biggest issue with Finance Bill 2025
· Effectively, KRA will be empowered to issue agency notices despite taxpayers having lodged appeals on the same
· This will significantly disadvantage taxpayers who have sought appeal on amounts demanded following audits by the Authority
· They want this proposal wholly rejectedBoth have taken issue with the proposed deletion of Sec59A(1B) of the Tax Procedures Act.
· The import here is that the deletion would allow KRA to automatically access trade secrets & personal data information for integration into the electronic tax management system
· Both want this proposal to be dropped in its entirety
· I fully agree with this submissionFYI, at the #BudgetSummit2025 convened by @NationMediaGrp on May 20th,
· I challenged the National Treasury's Director General for Budget, Fiscal & Economic Affairs about the proposal to grant KRA unfettered access to trade secrets & personal data
· He argues that the government will take reasonable care to ensure that this does not violate provisions of the Data Protection ActDelighted to see Anjarwalla & Khanna (@alnafrica) take issue with the proposal to grant KRA clawback powers in the event that goods sourced under VAT Exempt/Zero-rated status aren't used for the intended purpose.
They are asking the there be accompanying regulations to operationalise this provision.Both have taken issue with the proposal to increase the number of days for KRA to ascertain a tax refund from 90 to 120 days.
· The underlying argument here, & rightly so, is that this proposal will adversely affect the cashflow position of businesses that are awaiting refunds from the Authority.
· I like that both went further & raised the issue around the proposed deletion of Sec77(2) of the Tax Procedures Act which seeks to exclude weekends & public holidays in computation of statutory time for lodging Appeals and objectionsAnjarwalla & Khanna (@alnafrica) has taken issue with the proposal to restrict carryover losses to 5 years.
· I note, however, that whereas they are taking issue with it, what they are calling for is a grandfathering provision for existing tax losses. So they are not saying the provision should be deleted entirely
· What essentially they are saying is that this provision needs a cut off date such that businesses with existing tax losses continue to enjoy an indefinite horizon for carryover
· I disagree with @alnafrica's submission on this one & I agree with the proposal by the Law Society of Kenya's (@LawSocietyofKe) that this proposal needs to be done away with entirelyI am a little surprised by the Law Society of Kenya's (@LawSocietyofKe) submission objecting the proposal to remove the kes 5.0 million per annum turnover as the threshold for Significant Economic Presence Tax.
· I believe that threshold should go as proposed in Finance Bill 2025
· If you consider the entities being targeted by this tax, what is Kes 5.0 million in turnover to them?Anjarwalla & Khanna (@alnafrica) has taken issue with the radical clean up of the 1st Schedule (Exempt Status) & 2nd Schedule (Zero Rated status) of the VAT Act.Taking on the clean of the VAT Act is going to be a long shot.
We discussed this matter at the #BudgetSummit2025 convened by @NationMediaGrp & the National Treasury argues that the reason for this clean up is that there's been abuse of the preferential status.
National Treasury argues that 30.0% of all VAT refund claims end up as invalid.Both have taken issue with the proposal to do away with higher investment deduction allowance (150.0%) for investments outside Nairobi & Mombasa.Finally, if you wish to submit your comments & are not sure where to start with Finance Bill 2025, see 🧵 below
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Folks,
The National Assembly's Finance & Planning Committee has kicked off public hearings for Finance Bill 2025.
What are we seeing by way of submissions?
A 🧵 ... Some pretty solid submissions have been made by both Law Society of Kenya (@LawSocietyofKe) & Anjarwalla & Khanna (@alnafrica) ... As expected, both have taken issue with Finance Bill 2025's proposed deletion of Section 42(14)(e) of the Tax Procedures Act
· I am fully with both on this proposal. In my view, it is possibly the biggest issue with Finance Bill 2025
· Effectively, KRA will be empowered to issue agency notices despite taxpayers having lodged appeals on the same
· This will significantly disadvantage taxpayers who have sought appeal on amounts demanded following audits by the Authority
· They want this proposal wholly rejected ... Both have taken issue with the proposed deletion of Sec59A(1B) of the Tax Procedures Act.
· The import here is that the deletion would allow KRA to automatically access trade secrets & personal data information for integration into the electronic tax management system
· Both want this proposal to be dropped in its entirety
· I fully agree with this submission ... FYI, at the #BudgetSummit2025 convened by @NationMediaGrp on May 20th,
· I challenged the National Treasury's Director General for Budget, Fiscal & Economic Affairs about the proposal to grant KRA unfettered access to trade secrets & personal data
· He argues that the government will take reasonable care to ensure that this does not violate provisions of the Data Protection Act ... Delighted to see Anjarwalla & Khanna (@alnafrica) take issue with the proposal to grant KRA clawback powers in the event that goods sourced under VAT Exempt/Zero-rated status aren't used for the intended purpose.
They are asking the there be accompanying regulations to operationalise this provision. ... Both have taken issue with the proposal to increase the number of days for KRA to ascertain a tax refund from 90 to 120 days.
· The underlying argument here, & rightly so, is that this proposal will adversely affect the cashflow position of businesses that are awaiting refunds from the Authority.
· I like that both went further & raised the issue around the proposed deletion of Sec77(2) of the Tax Procedures Act which seeks to exclude weekends & public holidays in computation of statutory time for lodging Appeals and objections ... Anjarwalla & Khanna (@alnafrica) has taken issue with the proposal to restrict carryover losses to 5 years.
· I note, however, that whereas they are taking issue with it, what they are calling for is a grandfathering provision for existing tax losses. So they are not saying the provision should be deleted entirely
· What essentially they are saying is that this provision needs a cut off date such that businesses with existing tax losses continue to enjoy an indefinite horizon for carryover
· I disagree with @alnafrica's submission on this one & I agree with the proposal by the Law Society of Kenya's (@LawSocietyofKe) that this proposal needs to be done away with entirely ... I am a little surprised by the Law Society of Kenya's (@LawSocietyofKe) submission objecting the proposal to remove the kes 5.0 million per annum turnover as the threshold for Significant Economic Presence Tax.
· I believe that threshold should go as proposed in Finance Bill 2025
· If you consider the entities being targeted by this tax, what is Kes 5.0 million in turnover to them? ... Anjarwalla & Khanna (@alnafrica) has taken issue with the radical clean up of the 1st Schedule (Exempt Status) & 2nd Schedule (Zero Rated status) of the VAT Act. ... Taking on the clean of the VAT Act is going to be a long shot.
We discussed this matter at the #BudgetSummit2025 convened by @NationMediaGrp & the National Treasury argues that the reason for this clean up is that there's been abuse of the preferential status.
National Treasury argues that 30.0% of all VAT refund claims end up as invalid. ... Both have taken issue with the proposal to do away with higher investment deduction allowance (150.0%) for investments outside Nairobi & Mombasa. ... Finally, if you wish to submit your comments & are not sure where to start with Finance Bill 2025, see 🧵 below
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