Tax Planning and Business

measure PLANNING AND BUSINESS



The issue of revenue enhancement revenueation occupies a substitution position in a modern states economic, political and fiscal policies. The national taxation policy is therefrom a starting point for successful business achievement and practice. Every business must take into account taxation angle in commercial and investment plans. Several issues that modernize are necessary to lowstand the Kenyan tax organisation:-


1.0TAX SYSTEM DEVELOPMENT


The Kenyan tax system development goes back to 1958 under the East African Income Tax vigilance 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 operational up to 1973 when the East African Community was disbanded with each area 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 geezerhood save for the one-year
Finance budgets which introduced routine tax changes after the annual budgets.

2. TAX REFORMS

The first changes came into being from 1989 which coincided with the multi companionship 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 person-to-person IDENTIFICATION NUMBER [PIN]


The Personal designation 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 veritable business transactions are being entered into. The Personal Identification Number is based on a computer interlocking where all financial and tax data is amassed in...If you want to get a full essay, order it on our website: Orderessay



If you want to get a full essay, wisit our page: write my essay .