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From acquisition to divestiture, effective tax planning and compliance contribute to the value of your real estate portfolio. Granted property taxes are one of the largest recurring operating expenses associated with ownership, owners are often unaware of what items or costs are taxable, what items are being assessed or how their property is being valued.
Answering these and other related questions often produce recurring property tax savings for owners and lessees.
At Property Boutique®, our tax specialists combine industry experience with tax knowledge to help you maximize your profitability. We offer independent, innovative and results-driven property tax services.
Kenya Revenue Authority (KRA) is increasingly becoming aggressive as it seeks to achieve and/or surpass increasing revenue targets. In pursuit of this, tax audits are now commonplace often resulting in backdated tax demands that may be exorbitant, as widely reported in the media. The risks lie in principal taxes, penalties, fines and interest. Moreover, in some cases KRA or the Directorate of Criminal Investigations (DCI) may decide to pursue criminal prosecution for tax evasion, which is classified as an economic crime.
Considering this background, it is critical that real estate owners become proactive and take all the necessary measures to minimize non- compliance risks and tax exposures.
Tax Audits will invariably fall into the following categorization:
A tax health check audit is conducted by external auditors other than the KRA officers and it involves carrying out a detailed tax compliance review of all or specified tax issues that a company may be facing. The common taxes include PAYE taxes, withholding tax, Value Added Tax (VAT), corporation tax, customs and excise duty. A tax health check audit enables the business to know the level of risk it might be facing in advance and employ relevant corrective measures in advance. KRA usually encourages voluntary/self- disclosure of back taxes, and regularly offers leniency windows such as amnesty on fines, penalties and interest. These are often applicable where a voluntary disclosure is made, principal taxes paid in full and a formal application for waiver is lodged with the Commissioner by the defaulting taxpayer.
At Property Boutique®, our Tax Health Checks can help you as our client to:-
Property Boutique® has been effective in value negotiation/appeals, resulting in appropriate fair market values and associated liabilities for clients. Our services include: –
Property Boutique® can help clients to analyze potential property tax liabilities in real estate transactions into ensure transaction prices realistically incorporate future operating costs related to tax. Our tax due diligence services include:-
At Property Boutique®, we help both individuals and corporates in estate planning matters, and where applicable we undertake tax exemption processes on their behalf. In addition, we also advise clients on the most tax advantageous ways to hold their real estate portfolio or how to minimize any tax exposures. Some of the exemptions we usually process for clients include: –
For a seller of property, we assist in the computation and processing of capital gains tax (CGT) in a manner that will ensure maximum profit realization and where so required, we also process the appropriate CGT exemptions.