Are you abetter account by being meen

It has been observed that many of the accountants are very stingy. They rarely give money and they can easily tell you that they don’t have while in actual sense they do have. However a few accountants are generous and would sympathize with a needy situation and break the perception that all accountants are stingy. I have come across accountants who feel pain when they pay others their dues. They love getting a way of not paying you even in circumstances that they should pay. The enjoy getting more and paying little, remaining with a balance and having surpluses. Think about that!!!!!!!! Strange. The measure of a good accountant if profitability and profit if a product of revenue/receipt and payment/expenditure. If you get more and pay less you will make profit and the way to pay less is to deny others their right.Very bad!!!!!!!
Let’s go back to the stingy character of accountants. Is this in- born or acquired during their professional development? Do accountants have feelings and a heart to sympathize? Is being stingy a measure of professionalism, organization and preparedness?
My view is that you need not be stingy to be a better accountant

The accountant`s attire

I have been seeing many Kenyan accountants in black suits and I wonder if this is the recommended attire for accountants. Do suits make us more westernized that other attires? Could it be presentable to be in a suit as an accountant? Why black?

I am a qualified accountant but I get irritated by these black suits. They look as if I am in a funeral and I have just comer to hate them.Fellow accountant might think that I am not presentable but I don't agree with them at all. I know that dressing makes personality but personality is not made entirely on dressing.I have seen good brains in shaggy attire and verse visa.My take is that extreme in any situation is not beneficial.

Kenyan Taxation Problems-Talking to an accountant

Tax is a big headache to many people and you may be in deep problems with your taxman before you know that you are. Tax issues are normally ignored by many business persons and individuals. Few people invest in tax couching and evaluations and this can be very dangerous in most cases.

How do you approach tax evaluation?

If you don’t have an accountant then be careful who you approach to help you with your
tax problem. Few accountants are also tax experts – although they are typically great at
resolving day to day tax matters for their clients.

If you do have an accountant, they should normally be your first port of call. Remember
though that accountants are much like GPs (General Practitioners). When patients have unusual medical issues the GP will involve a specialist consultant. Accountants are the same.
Very few of them are able to resolve all tax problems, but they will often know who to ask and be able to refer their clients’ unusual tax issues to tax specialists.

The best accountants know what they don’t know and will not pretend to the contrary.
Some unqualified accountants (of which there are many) are less ethical and will try to kid
you that they can resolve all and any tax problems themselves even if their knowledge
and experience is out of date. To be fair, some qualified accountants are just that bad.

Kenyan Accountant-CPA or a Degree

It has been a long fight as to who leads in the accounting profession and who the professional accountant is. We have those who take Bcom (accounting) from the University and those who go into KASNEB CPA examinations. Between the two, who is the professional accountant remains the big question. The next question is whether the degree holder is superior to the CPA finalist. A CPA specialist would not get exemption in some mainstream university while a degree graduate will be exempted from the lower sections of the CPA examination. This complicates the issue further.
In terms of course content I think that a degree is wider, well structured and aimed at creating professional at managerial level than CPA. However, CPA is a bit practical in the accountancy, auditing, finance and taxation subject. A good example, we had a unit in behavioral studies in the University; that seems to be missing in the CPA setup. Secondly, I studied basic computer programming and practically used a computer in my university time but when studying CPA, I never touched a computer either in the exams or in the class work. If therefore you ask me, I will tell you that having a degree and combining the same with CPA would be great.
I don’t know your view and experience but the matter is debatable.

Filing the Individual returns- No more worries

The Kenyan 2011/2012 Budget came with the following tax ammendment that directly and immediately affects you as a tax pay.

(a) Individual Self Assessment Income Tax Returns Abolished - Fully Taxed PAYE Cases Only

(b) Withholding Tax on Management, Professional Fees or Training Fee Increased from 5% to 10%

The Minister for Finance has abolished individual self assessment annual income tax returns under the following conditions:-

1. Individuals that have no other source of taxable income other than employment income, are with immediate effect exempted from filing end of the year self assessment income tax returns.
2. The law took effect from this week (Thursday 9th June 2011). This also means that those fulfilling the stated condition i.e. have no other source of income other than employment income and have been fully taxed under PAYE at source, do not need to make returns for last year ( i.e. year 2010) going forward.

3. Those who have not been fully taxed at source (under PAYE rules) must still however make returns and pay any tax balances.

4. Those needing to claim income tax refunds, still need to make returns in the normal manner in order to get applicable refunds

The Minister increased withholding tax rate as follows :-
5. Withholding Tax : with effect from Thursday 9 June 2011. The rate of withholding tax was increased from 5% to 10%. This applies to management, professional fees and training fee.

The Kenyan 2011-2012 National Budget-Tax Issues

The Minister for Finance read his ministerial statement (read budget) on Wednesday 8^th June 2011,as did all the other EAC countries. This year´s budget termed as ´Building Resilience and Sustaining Inclusive Growth for a Prosperous Kenya´, stood at Kshs.1.155 Trillion but the bulk of it was on net recurrent expenditure standing at Kshs.474.2 9 Billion, Consolidated Fund Services recurrent expenditure amounts to Ksh.209.5 Billion; while development is pegged at Kshs.398.6Billion. As any other budget, this year`s budget had the following tax implications and proposals;

Tax Proposals

• Aseptic plastic bags shall be granted duty remission and imported at the rate of 10% instead of a Common External Tariff (CET) rate of 25% ;
• Imports duty on animal and poultry feeds zero rated (0%);
• Duty remission on inputs for the production of solar panels ;
• Battery operated vehicles will be duty exempt ;
• Exempt from paying import duty apron buses used at the airside ;
• Vehicles and equipment imported by Kenya police shall be exempt from import duty, security equipment such as hand held metal detectors, CCTV cameras, bomb detectors, under carriage walk through metal detectors and under carriage mirrors will also enjoy duty exemption ;
• Law amendment to make it mandatory for issuers of simcards to ensure registration before activation for use by their subscribers ;
• Amendment of the Banking Act to require the Central Bank to formulate guidelines to allow banks to enter into arrangements with banks outside Kenya to offer limited banking services to Kenyans while abroad ;
• Amend both the Banking and Microfinance Acts to allow for credit information sharing by institutions licensed under the two Acts ;
• Amend the Microfinance Act to prohibit institutions which obtain approval from the Registrar of Companies to use the words “Deposit Taking Microfinance” in their business name from commencing deposit taking business before being issued with a deposit taking license by the Central Bank ;
• Amend the law to remove the requirement for appointing fund managers by schemes that invest all their funds in guaranteed fund ;
• Amend the Capital Markets Act to facilitate introduction of an Over the Counter Market for bonds ;
• Amend the Capital Markets Act to allow for the introduction of a regulated commodity futures market ;
• Amend the Insurance Act to empower the Insurance Regulatory Authority to assume control over the assets of a financially troubled insurer ;
• Amend the Insurance Act to adopt a mortality table reflective of the Kenya experience ;
• Excise duty on kerosene removed;
• Stay of CET application to allow the importation of all types of rice at the rate of 35% instead of 75% for a period of one year ;
• Importation of wheat grain under the duty remission by gazetted millers at the rate of 0%, instead of 10%;
• Grant remission of duty for a period of six months on maize grain imported by gazetted maize millers at a duty rate of 0% instead of 50% as per the EAC CET ;
• Reduce import duty on food supplements from 25% to 10% ;
• Remove import duty on motor cycle ambulances ;
• Amend the PAYE rules to provide that an employee shall only qualify for one personal relief ;
• amend the Income Tax Act to exempt Real Estate Investment Trusts (REITs) from corporation tax in addition to exempting investors who receive dividends from REITs from payment of withholding tax ;
• Increase the withholding tax in respect of payments made to such professionals from 5% to 10% ;
• Harmonize the excise duty regime for cigarettes at Ksh.1,200 per mille or 35 percent of the retail selling price (RSP), whichever is higher ;
• Amendment of the law to allow the Government to enter into Tax Information Exchange Agreements ;
• Filing of returns by employees who have no other income and their PAYE has been paid to the exchequer by their employers abolished;
• Amend the Income Tax Act to give the Commissioner express powers to register such taxpayers.

If you want the budget speech, click here.

Unsecured Bank Loans in Kenya

It has become very easy for salaried Kenyans to get unsecured bank loans. They loans are fast to get and some have short processing period of less than one day. However, it is becoming a reality that quick money have hidden risks. These funds normally come to the borrowerers when they are not prepared and a temptation to misuse it is very high.You would likely get into an investment that you know very little about and chances of failure is very high.

Secondly, the interest rates of these loans are unfriendly. Please help me to calculate; If you take a loan of Kshs.1.6 million and you are required to pay Kshs.44,000 per month for 60 months. What you would have paid at the end of it all is Kshs.1,640,000/= a cool Kshs.1million in interest. This is madness and cold robbery that the banks use on ignorant clients in the name of unsecured loand. It is high time that the governmeny come to stop this.

For those thinking of unsecured bank loans in Kenya please think twice. You may be having an investment dream that in your view cannot fail. What could that be. Selling drugs? selling body parts? I dont know but any business, investment under the sun can fail or go wrong but the bank you you have to pay till death set you apart from the liability. Sickness, joblessness, disability, old age, bad economy etc will not release you from the trap. Be warned! the banks can milk you dry by their schemes of unsecured loans.