Brokers obligated to collect capital gains tax, KRA says

By GEORGE NGIGI, This e-mail address is being protected from spambots. You need JavaScript enabled to view it Posted  Tuesday, January 6   2015 at  03:24

IN SUMMARY

· Stockbrokers had sought to shelter themselves from the responsibility of collecting the tax, which is being re-introduced after a lengthy suspension.

· The taxman said systems used by the brokers to collect stamp duty can also be used to collect the capital gains levy.

The Kenya Revenue Authority (KRA) has maintained that stockbrokers are obligated to collect capital gains tax on sale of shares, citing a section of the law that designates them as agents for the taxman.

Stockbrokers had claimed they need to be appointed collecting agents through a gazette notice to start deducting the levy, which became effective on January 1. KRA, however, says the capital gains tax laws that were suspended nearly three decades ago already designated stockbrokers as collecting agents for stock transactions, maintaining that no new gazettment is required.

“A stockbroker who conducts the transfer of investment shares on behalf of a transferor shall collect and remit tax to the commissioner in accordance with section 35(5),” reads paragraph 18 of the eighth schedule.

http://www.businessdailyafrica.com/Brokers-obligated-to-collect-capital-gains-tax--KRA-says/-/539552/2579620/-/vmvv4jz/-/index.html

 

 

 

 

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