TRANSITIONAL PROVISIONS (Section 133)
1. For the purposes of the application of the Management Act under
subsection (4) of section 133 of this Act -
- (a) references in the Management Act to the Authority shall be read as references to the Minister;
- (b) references in the Management Act to the Commissioner General and to other officers shall be read as references to the Commissioner and equivalent officers appointed under this Act;
- (c) the local committees and the tribunal appointed for Kenya under the Management Act shall continue in being for the purpose of that application;
- (d) rules made under the Management Act shall, to the extent that they refer to Kenya, continue to have full force and effect.
2. Legal proceedings commenced prior to 1st January, 1974, under
the Management Act shall not be abated by reason only of the operation of
subsection (2) of Section 133 of this Act, and where the Commissioner General
was a party to those proceedings the Commissioner shall be substituted as a
party in place of the Commissioner General.
3. (1) Subject to this Schedule, the continuity of the operation of the law relating to income tax shall not be affected by the substitution of this Act for the Management Act and accordingly -
4. Where the ascertainment of the total income of a person for the year of income 1973 results in a deficit, the total income of that person for the year of income 1974 shall be computed as if section 13(4) of the Management Act continued to apply to that year of income.
5. Where a farmer has elected under section 16 of the Management Act not to take into account the values of livestock and produce at the beginning and end of each year of income for the purposes of ascertaining his income therefrom for each year of income, then that election shall be deemed to be an election made in accordance with section 17 of this Act
6. Where, immediately prior to the commencement of this Act, there is for the purpose of the Second Schedule to the Management Act in relation to a person a residue of expenditure or expenditure still unallowed, then that residue of expenditure or expenditure still unallowed as the case may be, shall, in relation to that person, be the residue of expenditure or expenditure still unallowed, as the case may be, on the commencement of this Act for the purposes of the Second Schedule to this Act.
7. Where under this Act -
8. Where under the Management Act the income of a beneficiary under a trust or settlement has been charged to tax for a year of income on the basis of the amount receivable under that trust or settlement in that year of income, nothing in this Act shall operate to charge that beneficiary on income received after the commencement of this Act which has been charged on him under the Management Act.
9. Arrangements specified in notices issued under section 55 of the Management Act shall continue to have effect as if they had been made under section 41 of this Act.
10. Local committees and members thereof appointed for areas under section 97 of the Management Act shall continue to act according to the terms of the notices making those appointments as if those local committees and the members thereof had been established and appointed by notices under section 82 of this Act:
11. Where, after the commencement of this Act, a payment is made in respect of the refund or return of contributions made or premiums paid prior to the commencement of this Act, under an approved pension scheme, approved pension fund, approved annuity contract, approved trust scheme or approved provident fund mentioned in subsection (1), (2), (3) and (4) of section 8 of the Management Act, that payment shall in the manner and to the extent provided in those subsections, and in section 3(c), of the Management Act, be deemed to be income charged to tax under section 3(2)(e) of this Act:
3. (1) Subject to this Schedule, the continuity of the operation of the law relating to income tax shall not be affected by the substitution of this Act for the Management Act and accordingly -
- (a) so much of an enactment or document as refers, whether expressly or by implication, to or to things done or to be done under or for the purposes of a provision of this Act shall, if and so far as the nature of the subject matter of the enactment or document permits, be construed as including in relation to the times, years or periods, circumstances or purposes in relation to which the corresponding provision in the Management Act has or had effect, reference to , or, as the case may be, to things done or to be done under or for the purposes of, that corresponding provision;
- (b) so much of an enactment or document as refers, whether expressly or by implication, to or to things done or to be done under or for the purposes of, any provision of the Management Act shall, if and so far as the nature of the subject matter of the enactment or document permits, be construed as including in relation to the times, years or periods, circumstances or purposes in relation to which the corresponding provision of this Act has effect, a reference to, or, as the case may be, to things done or deemed to be done or to be done under or for the purposes of, that corresponding provision.
4. Where the ascertainment of the total income of a person for the year of income 1973 results in a deficit, the total income of that person for the year of income 1974 shall be computed as if section 13(4) of the Management Act continued to apply to that year of income.
5. Where a farmer has elected under section 16 of the Management Act not to take into account the values of livestock and produce at the beginning and end of each year of income for the purposes of ascertaining his income therefrom for each year of income, then that election shall be deemed to be an election made in accordance with section 17 of this Act
6. Where, immediately prior to the commencement of this Act, there is for the purpose of the Second Schedule to the Management Act in relation to a person a residue of expenditure or expenditure still unallowed, then that residue of expenditure or expenditure still unallowed as the case may be, shall, in relation to that person, be the residue of expenditure or expenditure still unallowed, as the case may be, on the commencement of this Act for the purposes of the Second Schedule to this Act.
7. Where under this Act -
- (a) a sum is deemed to be income of, or in respect of, a year of income prior to the commencement of this Act; or
- (b) (Deleted by 2 of 1975, s.5.);
- (c) the Commissioner may divide an amount into the portions and a portion is taken into account in computing the gains or profits or in ascertaining total income for a year of income prior to the commencement of this Act,
8. Where under the Management Act the income of a beneficiary under a trust or settlement has been charged to tax for a year of income on the basis of the amount receivable under that trust or settlement in that year of income, nothing in this Act shall operate to charge that beneficiary on income received after the commencement of this Act which has been charged on him under the Management Act.
9. Arrangements specified in notices issued under section 55 of the Management Act shall continue to have effect as if they had been made under section 41 of this Act.
10. Local committees and members thereof appointed for areas under section 97 of the Management Act shall continue to act according to the terms of the notices making those appointments as if those local committees and the members thereof had been established and appointed by notices under section 82 of this Act:
11. Where, after the commencement of this Act, a payment is made in respect of the refund or return of contributions made or premiums paid prior to the commencement of this Act, under an approved pension scheme, approved pension fund, approved annuity contract, approved trust scheme or approved provident fund mentioned in subsection (1), (2), (3) and (4) of section 8 of the Management Act, that payment shall in the manner and to the extent provided in those subsections, and in section 3(c), of the Management Act, be deemed to be income charged to tax under section 3(2)(e) of this Act:
Provided that -
- (i) references in section 8(2) to "any year of income" shall be construed as meaning any year of income prior to the commencement of this Act; and
- (ii) references in section 8(2) to “ the year of income" and "the relevant year of income" shall be construed as references to the year ending 31st December, 1974; and
- (iii) in section 8(2) the proviso thereto shall be read and construed as if the following words were deleted -
- (a) which expired earlier than the year of income (hereinafter referred to as the relevant year of income) prior to the year of income -
- (i) in which it was received; or
- (ii) in the case of a policy, in which the policy was assigned or transferred; or
- (iii) in which the employee left the service of the employer; or
- (iv) in which the person died, whichever is the earlier; and
- (b) "in excess of one year of the period";
- (iv) section 8(3) and (4) shall apply only in respect of contributions made, or in case of paragraph (a) of subsection (4) thereof in respect of a pension right accrued, prior to the commencement of this Act.