Day: October 14, 2020

An agency relationship exists whenever one party known as the principal appoints another party known as agent and delegates decision making authority to them (agent). Therefore in this relationship the agent acts on behalf of the principal In finance, there Read More …

Firms just like individuals operate with specific goals. Without goals the firm will not be able to achieve much. These goals include; (a) Financial goals (b) Non-financial goals   FINANCIAL GOALS   a) Profit maximization goal Profit can generally be Read More …

 INTRODUCTION TO FINANCIAL MANAGEMENT  WHAT IS FINANCE Finance is a branch of economics concerned with resource allocation as well as resource management, acquisition and investment. Simply, finance deals with matters related to money and the markets. It is the science Read More …

Introduction A business is defined to include every trade, manufacture, adventure in the nature trade. According to Section 3 (2) Business income is chargeable to tax for whatever period carried on provided it is carried on in the nature of Read More …

Investment income is one of the specified sources of incomes. Investment income is received in form of dividends or interest Dividend income “Dividend” means any distribution (whether in cash or property, and whether made before or during a winding up) Read More …

Introduction This is a method of collecting taxes at source which was introduced to make payment of taxes convenient both to the tax payer and to the government. It also reduces the collection costs and minimizes chances of tax evasion. Read More …

Personal reliefs A resident individual with taxable income is entitled to a personal relief of Kshs. 1,162 per month (i.e. Kshs. 13,944 per annum). This is a uniform relief and employers are advised to automatically grant personal relief to all Read More …

Introduction Employment income is one of the specified sources of income chargeable to tax. Employees are charged to tax on all benefits received from employment (both cash and non cash) Employers are required to operate a pay as you earn Read More …

The Kenya Revenue Authority (KRA) was established by an Act of Parliament, Chapter 469 of the laws of Kenya , which became effective on 1st July 1995 . The Authority is charged with the responsibility of collecting revenue on behalf Read More …

Introduction Taxes may be classified based on: Administrative collection arrangements: Direct taxes and indirect taxes. Tax rates: Progressive, proportional, regressive and digressive taxes Tax bases Classification Based on Administrative Collection Arrangements Direct Taxes This is a tax that requires a Read More …