Documents to be included in return of income.
(1)
Where a person who carries on a business makes a return of income for a year of income, and accounts of his business for an accounting period relating to that year of income have been prepared or examined by another person in a professional capacity, then he shall furnish –(a) a copy of the accounts signed by himself and by that other person together with a certificate signed by that other person -
- (i) where the accounts were prepared by the other person, specifying the nature of the books of accounts and documents from which the accounts were so prepared; and
- (ii) stating whether and subject to what reservations, if any, he considers that the accounts present true and fair view of the gains or profits from the business for that accounting period;
- Provided that such accounts shall be furnished not later than the last day of the sixth month following the end of his year of income
(2)
The Commissioner may, by notice in writing, require a person who has made a return of income and to whom subsection (1) applies to furnish him within a reasonable time, not being less than thirty days from the date of service of the notice, with a certificate signed by the professional person who prepared or examined the accounts a copy of which was sent with the return -- (a) stating whether to the best of his knowledge and belief the certificate referred to in subsection (1)(b) is true and correct;
- (b) where the accounts were prepared by a professional person, recording the extent of his verification of the books of accounts and documents produced to him;
- (c) where the accounts were examined by a professional person, specifying the nature of the books of account and documents produced to him and the extent of his examination thereof.
(3)
Where a professional person refuses to give a certificate referred to in subsection (1) or (2) he shall furnish to the person who made the return a statement in writing of his refusal and of the reasons therefor and the person who made the return shall send the statement to the Commissioner.(4)
Where a person who carries on a business makes a return of income for a year of income and accounts of his business for an accounting period relating to that year of income have not been prepared or examined by another person in a professional capacity, he shall furnish with the return of income such accounts of his business for the accounting period relating to that year of income as are necessary to support the information contained in the return together with –- (a) a certificate signed by himself -
- (i) specifying the nature of the books of account and documents from which the accounts were prepared;
- (ii) stating whether the accounts reflect all the transactions of his business and present a true and fair view of the gains or profits from the business for that accounting period.
- (b) in the case of a company or partnership, a certificate specifying the nature and amounts of all payments of whatever kind made to, and the nature of any benefit, advantage, or facility, of whatever kind, granted, in the case of a company, to the directors thereof and to employees whose emoluments are at the rate of eighty thousand shillings a year or more, or, in the case of a partnership, to the partners; and the certificate shall be signed by a majority of the directors or partners (of whom one shall be the partner who signed the return of income of the partnership), as the case may be, or if there are less than three directors or partners, by all the directors or partners.
(4A)
Deleted by Act No. 57 of 2012, s. 19.
(4B)
Deleted by Act No. 57 of 2012, s. 19.
(5)
For the purposes of this section:-- "accounts" means a balance sheet or statement of assets and liabilities, and trading account, profit and loss account, receipts and payments accounts, or other similar account however named;
- “ professional person”, in the case of a company, means a certified public accountant or an authorized accountant within the meaning of the Accountants Act (Cap. 531).
(54A)
-Keeping of records of receipts expenses, etc.
(1)
A person carrying on a business shall keep records of all receipts and expenses, goods purchased and sold and accounts, books, deeds, contracts and vouchers which in the opinion of the Commissioner, are adequate for the purpose of computing tax.(1A) For the purposes of this section, the carrying on of business includes any activity giving rise to income other than employment income. Finance Act, 2014 effective 01 January 2015
(2)
Any person who contravenes the provisions of subsection (1) shall be liable to such penalty, not exceeding twenty thousand shillings, as the Commissioner may deem fit to impose.
(54B)
- Supply of information upon change in particulars
Finance Act, 2014 effective 01 January 2015 (1)
Every person carrying on a business shall notify the Commissioner of any changes in the following particulars within thirty days of the occurrence of the change—(a) the place of business, trading name and contact address;
(b) in the case of —
- (i) an incorporated person, of the persons with shareholding of ten per cent or more of the issued share capital;
- (ii) a nominee ownership, to disclose the beneficial owner of the shareholding;
- (iii) a trust, full identity and address details of trustees, settlors and beneficiaries of the trust;
- (iv) a partnership, the identity and address of all partners; or
- (v) cessation or sale of business, all relevant information regarding liquidation or details of new ownership.