Importance of Tax function In An Organization

My 5 year old daughter asked me if I buy a mango do I pay taxes. I was surprised by the question but realized in the drive for government to raise more money in the resent past the word TAX has been the vocabulary for all young and old. Everybody wants to try and understand tax.

For company that wants to grow and make profits the understanding of tax is a must. There are so many tax heads depending on the operations of each company. For instance if 30% of company annual  profits should go income tax then a company is bound to understand tax and create a tax function as an active department within the organization.

A tax function department in most cases will be involved managing tax compliance-related activities, these will include daily monitoring ot taxes, filling returns , payment of taxes, avoiding penalties.

 However, the objectives for which a tax department is set up should go beyond mere compliance management. An effective tax department has evolved into a function that focuses more on adding value to various aspects of business. It includes efficient tax planning, effective tax risk management, establishing strong tax control environments, proactively engaging tax authorities and tax professionals on issues which are not so clear and may have significant impact on business decisions, etc The tax function can be built in house and strengthened with an outsourced tax services from competent tax experts.

When there is at tax query or crisis a company that had not set a good and effective tax function they might even lose millions in tax demands which could have been avoided. “My tax advisor/auditor/accountant didn’t advise me properly that’s why am in these problem “ is an old unfashionable excuse when in tax crisis. Ignorance is no defense! Any company that wants to grow exensitively must have a tax function by the way the more company grows the more taxes they pay. Every company must have a competent tax advisor. 

From Our Blog

Managing KRA Audits.

Introduction The Government through KRA is in need of money to cover its recurrent budget and have money for massive developments to meet it pro

2019-01-31 21:56:04
Taxation of Residential Rental Income.

Annual rental income more than kshs 10 million Under this category, the total collection of the residential rental income is over kshs 10 million

2019-01-31 21:53:53
Tax Appeals Tribunal Process

Lodging a notice of appeal: A person who is dissatisfied with an appealable decision may appeal to the TAT in accordance with the TATA. Section 52(1

2019-01-31 21:47:03
KRA Audit

 The TPA allows the Commissioner to issue to a tax payer a default assessment, amended assessment or an advance assessment (Section 29 to 31 TP

2019-01-31 20:46:37
All Rental Taxes

Rental income is any income earned from the permitting another to use property that one owns or has rights over  •Arises from the renti

2019-01-31 21:50:00
Subscribe for our Newsletter
Re-imagining the way
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
I’d like to receive newsletters and agree to the Privacy Policy.