Taxation 101: Book a beginner’s guide to Kenya’s tax laws

“Our new Constitution is now established, and has an appearance that promises permanency; but in this world, nothing can be said to be certain, except death and taxes.”

This famous quote, attributed to former American President Benjamin Franklin in a letter he wrote in 1789, draws on the inevitability of death to underline the folly of avoiding the burden of paying taxes.

Even for those who think that they can — or have evaded paying tax — it ultimately catches up with them. They finally pay, and dearly at that. In any case, everyone pays taxes, either overtly or covertly.

Today in Kenya, with the ongoing war against corruption, tax compliance has come into the limelight. Denying the government revenue by evading taxes is actually a crime against the people, because it hinders the effective provision of basic essential services.

LEGISLATION

In order to ensure compliance, the government runs a systematic regime of tax legislation. This is aimed at ensuring that all citizens and corporate entities are aware and comply with this important civil obligation.

For the first time, these laws have been comprehensively captured in a new book, A Text Book on Tax Law in Kenya, authored by lawyer and financial expert Dr Njoroge Obadiah Kimani.

Dr Kimani has over 34 years of experience in accounting and related disciplines, and over 10 years’ experience in law practice.

The publication is an exposition on Kenyan tax law, which the author has gathered from his wide-ranging experiences, superlative knowledge and understanding on tax matters and extensive research. The book covers the whole range of taxation matters from basic information on individual taxes to complex matters touching on tax disputes and resolutions thereof at tribunals and courts of law.

IDEAL REFERENCE

The publication’s academic bent makes it an ideal reference manual for advocates, accountants, tax agents, tax consultants and other professionals interacting with tax matters.

Indeed, any professional pursuing a career in tax, including decision-makers, judges, magistrates and Tax Tribunals will find A Text Book on Tax Law in Kenya a useful — if not indispensable — handbook. In it there are numerous examples and references of the tax law in Kenya, and the tax jurisprudence emanating from Kenyan courts and the Tax Appeal Tribunal.

The book is also a handy companion for business owners or any other person seeking to sharpen his or her skills and knowledge of Kenya’s tax law. The 426-page treatise is divided into 18 chapters.

That Dr Kimani is also an advocate of the High Court, a KRA Tax Agent and a certified accountant among others, easily speaks for itself in the book.

JURISPRUDENCE

The tax expert has quoted substantially from jurisprudence, case studies, and technical documents on his chosen topics. In addition, the book has a rich bibliography on tax matters, making it a tremendously authoritative publication.

Although the book may seem intimidating on first impression, readers will find it well designed and easy to read. The usability is fantastic. However, readers must appreciate that there is a level of language and detail below which some topics may lose their essence if they are simplified further.

The author has gone out of his way to break down every complicated concept he handles by using sections and subsections. He’s thorough in his research and explanations and it helps that he ends each chapter with a conclusion of the main topic. One of Kenya’s more seasoned accountants, former Finance minister Amos Kimunya, notes that the book “provides a much-needed relief to tax practitioners, tax administrators, tax payers, researchers as well as students by providing a one-stop reference point on the latest developments in taxation law and practice in Kenya”.