Tax Planning in Sez

valuate PLANNING AND BUSINESS



The issue of evaluate occupies a fundamental position in a modern states economic, political and fiscal policies. The national appraiseation policy is then a starting point for successful business mental process and practice. Every business must take into account taxation angle in commercial and investment plans. Several issues that issue forth are necessary to chthonicstand the Kenyan tax arrangement:-


1.0TAX SYSTEM DEVELOPMENT


The Kenyan tax system victimization goes back to 1958 under the East African Income Tax counseling Act which was applicable over Kenya, Uganda and Tanganyika. The three countries tax was administered under a single Tax Commissioner based at capital of Kenya where tax was collected and later allocated to each territory. The system was practicable up to 1973 when the East African Community was disbanded with each res publica managing its own tax. Kenya Parliament enacted the Income Tax Act Cap 470 in 1973 to effect this change.

The Income Tax Act was operational over the historic period save for the annual
Finance bud works which introduced routine tax changes after the annual budgets.

2. TAX REFORMS

The first changes came into being from 1989 which coincided with the multicompany political changes from 1990.


1.2.



1VALUE ADDED TAX ACT 1989


The Value Added Tax Act of 1989 introduced the famous consumer tax on goods and services effective from January 1990. The new tax party replaced the former Sales Tax which was only levied on goods.


1.2.2 individual(prenominal) IDENTIFICATION NUMBER [PIN]


The Personal appellative Number was introduced in 1992 to be applied
for by both natural persons and legal persons for tax purposes. The
Personal Identification Number is to be used as a tax file number and also quoted when authentic business transactions are being entered into. The Personal Identification Number is based on a computer net income where all financial and tax data is amassed in...



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