FINANCE
The Role Of Tax Consultants In Our Businesses
By CPA Peter Kinuthia
Tax Agents / Consultants are experts in providing commercially-focused tax advice and tax services to a wide range of clients who operate in all sectors of the economy . This entails devising taxefficient strategies for multinational and domestic based clients in diverse business situations , including mergers , takeovers and corporate restructures .
Tax consultants work continually to help ensure that their clients make the best business decisions in light of regular tax changes and developments . They monitor and anticipate changes to tax legislation and respond quickly with advice specific to their clients ’ particular commercial requirements .
One of the key elements of the income and cash-flow statements is tax . Tax is a cost and has cashflow implications to a business . If not well managed , tax risks can lead to business closure or reputational damage . Businesses should only pay their fair share of tax , not a penny more or penny less . Being a technical and a complex subject , tax is a reality that businesses cannot get away with .
A company should be compliant with business requirements and Government policies , especially where taxes are concerned . In this regard , tax matters should be handled by a competent personnel either an in-house team or outsourced to a professional .
In Kenya , the Government has taken cognizant of the fact that tax is complex and technical . Accordingly , in order to enhance compliance and minimise tax exposure , it has legislated the tax practice to ensure only qualified and competent professionals are engaged . In this regard , pursuant to the provisions of the Tax Procedures Act , 2015 and the Tax Procedures Act ( Tax Agents ) Regulations , 2020 , any person desirous of practising as a Tax Agent in Kenya , must be registered by the Commissioner of the Kenya Revenue Authority ( KRA ).
Qualification for registration as a Tax Agent
Upon application , the Commissioner may register a person as a Tax Agent , in Kenya , if that person is fit and proper , and : is a member of the Institute of Certified Public Accountants of Kenya
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Tax consultants work continually to help ensure that their clients make the best business decisions in light of regular tax changes and developments . They monitor and anticipate changes to tax legislation and respond quickly with advice specific to their clients ’ particular commercial requirements . and with at least three years ’ experience ; is an advocate of the High Court of Kenya , holds a current practicing certificate and with at least three years ’ experience ; is a former tax administrator with at least ten years ’ experience in tax administration ; or holds any other relevant qualifications and possesses experience recognised by the Commissioner as sufficient for a tax agent .
In determining whether a person is fit and proper to be registered as a tax agent , the Tax Agents Committee shall consider ; whether the person is tax compliant ; the person ’ s probity , competence and soundness of judgment in fulfilling the responsibilities of a tax agent ; whether the person has ever been involved in financial irregularities including misappropriation of funds or manipulation of tax transactions ; whether the person has ever been convicted of an offence involving fraud ; or whether the person has been convicted of any tax offence under a tax law or an anti-corruption law .
Functions of a Tax Agent
As per the said Tax Procedures Act ( Tax Agents ) Regulations , 2020 , the functions of a tax agent are : prepare and submit tax returns on behalf of a taxpayer ; liaise with the Commissioner on behalf of a taxpayer on matters relating to tax ; or advise and represent a taxpayer in tax matters before the Tribunal .
Advantages of using a Tax Agent
Time efficient
Owning a business takes so much of the entrepreneur ’ s time as he or she will have
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