If you look at Rolex, it’s owned by a non profit trust ran by the Rolex founder which means Rolex doesn’t pay corporate tax and subsequently can never list on the stock exchange. Given how pricey their time pieces are, how does that work as they obviously make profits. Are all profits channeled to the family trust for charitable giving?
An example would be Getty Oil which was owned by the Getty Foundation and they run a museum (how charitable is this?). When Texas Oil mounted a bid for Getty Oil, they suddenly had too much money and couldn’t spend it fast enough to maintain their non profit status, there’s a % that has to be spent to continue with the non profit status. They had to build a massive museum and go on a wild purchasing spree for art to spend that money fast enough.
Rolex going public would make this look like pocket change.
Locally an example would be Strathmore School which is a non profit yet they charge 2M+ for Masters.
Can I as Ngimanene transfer Ngima Corp to Ngima Family Trust to safeguard it, same way Uhuru, Kalonzo and Mudavadi have Family Trusts. Ama KRA hawawes itikia hio maneno? We can find something to support to attain the charitable nature required.
Taxes are meant for the plebs !
And I want to move from plebs. Si hata wafanye EABL na Safaricom charitable organizations
Damn nimeona hii…ama juu iko Switzereland?
Think it’s also in Kenya, or why would Kenyatta, Kalonzo, Mudavadi, Moi have family trusts?
Taxation is different I would think…Naona Rolex ni kama Ikea in terms of structure.
How so?
Naona ni non-profit pia.
"since 1982, the IKEA Group has been owned by a foundation in the Netherlands. Our profits can only be reinvested, used for charitable purposes through the IKEA Foundation or kept as a financial reserve for future investments in the business. "
So it’ll never go public too. Can you do that here and get away with it especially from a tax benefit point
No, Kenya has specific exceptions for non-profits though najua of course kuna loopholes
https://swkadvocates.com/2021/05/26/tax-implications-for-not-for-profit-organizations-in-kenya/
For other organisations, for its income to be exempt from income tax, an organization must have been established solely to relieve poverty or distress of the public, or to advance religion or education. In addition, the Commissioner of Income Tax (“Commissioner”) must conclude that the income is expended either wholly within Kenya or in ways that benefit the residents of Kenya
With the right accountants and lawyers will always find a way