Building or Buying Properties without KRA sending you notices like these?

How do you do the above while avoiding KRA auditing you immediately you lodge an application for Stamp Duty Payment or while constructing?

*** Below is a sample notice from KRA****

You are therefore requested to share soft copies of the following documents for the purpose of verification of your Rental Income declarations within seven (7) days;

  1. List of all properties owned showing plot numbers and locations.
  2. Rent schedules showing details of all the tenants and income earned per month for the period January 2021 - To date.
  3. Lease agreement with the tenant for different units
  4. Certified bank statements for the period January 2021 - To date.
  5. Cash receipts, Mpesa/Airtel money statements for the period January 2021 - To date.

Please note that the verification is not limited to the records asked and any other documents may be required on need basis.

Forrowing closely to Kenya Rapist Association requirements.

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Assuming that I comply… The only problem with this impromptu audits is that they are extortionary… they will use a toothpick to extract more from you… So, it is never a pleasant experience… It is obvious that when one lodges some applications in their systems, there is a notification sent to your KRA PIN tax station… for further investigation whether you are compliant or not…

https://twitter.com/MwangoCapital/status/1778777883051266222

Those guys are everywhere. A few came knowing at some properties we own. They have terrorized and towanishad people the past year

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That is why I opened this thread… They are too vigilant… Make a transaction that results in the payment of capital gains, stamp duty or even try to import anything… they will come calling! And they are a nuisance…

How do you deal with them?

Be compliant and make sure that before you make a significant purchase, that your books reflect that kind of income… or take a loan from a bank else, they will siaga you to hell!

If you know someone inside its downhill…

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Not really… they keep shifting them… I have received such demands several times from different people there… Knowing someone will only help if they are in charge of your tax PIN… in your tax station…

I mean people at the very top

It is about money… even those at the top will not help you with this…

Very nice, time to fight corruption at the source

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I heard watu wa field waliongezewa mengi then given targets. So yeah some rentals we had people came sniffing around. But it seems like wamechill. What I was told is people just flat out lie about how much rent is charged

Knowing how to navigate taxes is just as important as knowing how to create income imo

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If you know someone kuna venye hutapokea random headaches from them you’ll be somewhat shielded against, hii ni kenya @Yakut

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We need to get all taxes paid. We are fixing the handshake

Yeah… I know… I wish there is a way… Of course, if you hide that will be great for you… the only problem is if your money goes through the bank, you cannot afford to hide for long

Another effort towards nabbing all tax evaders:

Dear Member,

RE: MANDATORY REQUIREMENT FOR ULTIMATE BENEFICIAL OWNER DECLARATION FORM

We are writing to inform you of an important update.

On November 3rd, 2023, The Central Bank of Kenya (“CBK”), under Circular No. 14 of 2023, issued a directive guiding banks on their AML/CFT/CPF obligations to identify and independently verify the identity of Beneficial Owners (BOs) of legal persons and arrangements as well as their obligations of Customer Due Diligence (CDD), Enhance Due Diligence (EDD), and Record keeping.

Although the Bank currently captures the business entity shareholder details, it is noted that the director and the shareholder are separate from the Beneficial Owner. The Ultimate Beneficial Owner is distinctively defined as a person who meets the following criteria:

• Hold at least ten percent (10%) of the issued shares in a Company either directly or indirectly.


• Exercise at least ten percent (10%) of the voting rights in a Company either directly or indirectly.
• Hold a right, directly or indirectly, to appoint or remove a Director of the Company.
• Person(s) responsible for making strategic decisions that ultimately affect the business or determine the itinerary of the legal person. There is significant managerial responsibility to control, manage, or direct the legal person or arrangement.

Therefore, to comply with CBK regulations and ensure accurate identification of entity Beneficial Owners, we are enforcing the Ultimate Beneficial Owner Declaration Form as a mandatory requirement to be provided by business entities.

In view of the above kindly visit any of our branches and submit the following by 31st of May, 2024.

• Copy of Identification documents


• KRA PIN where applicable
• Filled ultimate beneficial owner declaration form.

Thank you for your cooperation and understanding. Should you have any questions or concerns regarding these requirements, please do not hesitate to contact us.

Once again, we welcome you to Equity and we look forward to partnering with you.