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Relief for Churches as Court Bars KRA from Imposing Taxes on Tithes and Offerings

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Relief for Churches as Court Bars KRA from Imposing Taxes on Tithes and Offerings

The High Court has barred the Kenya Revenue Authority (KRA) from imposing taxes on tithes, offerings, and donations made to churches by their congregants.

Justice David Majanja upheld a ruling by the Tax Appeals Tribunal that blocked KRA from demanding taxes from houses of worship. The tribunal made the ruling in a case where the tax agency was demanding Sh5.5 million in tax from Thika Road Baptist Church.

In demanding the said amount from the church, the taxman argued that it failed to produce documents that showed it was exempted from paying taxes.

Although churches, mosques, and other houses of worship are exempted from paying taxes, KRA insisted that they must produce a tax exemption certificate, which is subjected to certain conditions.

But judge Majanja dismissed KRA’s argument, stating that donations, tithes, and offerings made to the church cannot be considered an income, hence not subject to the income tax bracket.

“I hold that since tithes, freewill donations and offerings are not income chargeable with income tax, the church didn’t have to seek the tax exemption,” Majanja ruled.

The judge also faulted KRA for failing to demonstrate how tithes, offerings, and donations to the churches are gains and profits, employment, or rights granted for use of property or any other form of recognized income by the Income Tax Act (ITA).

He noted that tithes and offerings to the church and other religious organizations are not within the scope of income tax, which is chargeable within the ITA.

“I agree that the type of income (to the church) does not fall within section 3(2) of the ITA,” he said.

 

19 COMMENTS

  1. KRA will soon have their…
    KRA will soon have their sights set on commercial sex workers, wale wamama wa kuwekea watu mchele, street families, and Dandora dumpsite people. Who legislates taxation in Kenya? Is it KRA or Parliament?

    • @Mlandizi, parliament is…
      @Mlandizi, parliament is supposed to legislate but I think this has been Uhuru’s doing. These churches should be paying a higher percentage as they have proved to be personal businesses leaving communities they serve high and dry. And ofcourse those on Koinange should give to Caesar what is Caeser’s aala.

    • @ Mlandizi, before they …
      @ Mlandizi, before they “set sights on commercial sex workers,and wale wamama wa kuwekea watu mchele, first thing first. They have to make these” vocations” legal. Infact, if it’s revenue they are interested in, they should legalize, drugs,and control the sales,legalize prostitution,and tax the workers. Not sure about,”Michelle”- Mchele. We cannot legalize someone secretly harming another one….That’s why there exists adiference between first degree murder and homicide.Both result in death,but under totally different circumstances-intententinal and non…
      Come to think of it, @ Mlandizi, dont sex workers have a union in Kenya,where prostitution is illegal?
      Interestingly, prostitution is not illegal in UK,but pimping,and soliciting is illegal…Strange.I guess it appears legal in UK to say ,”Hey here is $200 let’s f*ck”,as opposed to,”hey are you looking for a good time… it will cost you $200 an hour tax included…What say you?

    • @ Mlandizi, before they …
      @ Mlandizi, before they “set sights on commercial sex workers,and wale wamama wa kuwekea watu mchele, first thing first. They have to make these” vocations” legal. Infact, if it’s revenue they are interested in, they should legalize, drugs,and control the sales,legalize prostitution,and tax the workers. Not sure about,”Michelle”- Mchele. We cannot legalize someone secretly harming another one…
      Come to think of it, @ Mlandizi, dont sex workers have a union in Kenya,where prostitution is illegal? Do they pay union dues,taxfree? Not only that,but believe it or not studies have shown that 40% of sex workers in Kenya are married,or in committed relationships.Talk of morality…and we act like legalizing would be abad thing.
      Interestingly, prostitution is not illegal in UK,but pimping,and soliciting is illegal…Strange.I guess it appears legal in UK to say ,”Hey here is $200 let’s f*ck”,as opposed to,”hey are you looking for a good time… it will cost you $200 an hour tax included…What say you?

  2. So, they are exempted from…
    So, they are exempted from paying taxes and are often corrupted for political gain?

  3. KRA is full of crooks. KRA…
    KRA is full of crooks. KRA will be burning in hell. Churches all over the world are exempt from taxes. If they can do this to churches, what about the common guy?

    • Most Churches have Become…
      Most Churches have Become DENS of ROBBERS; and Awaiting the LORD’s whipping. This is Why when Some of them Pastors die: They go Nowhere but Hang around Haunting their Family and Chuch members foe Food to Eat, Money to Keep, and Newspapers to Read at their Graves. You would Expect them to Ask for the BIBLE (but they Instead ask for the Forementioned 3).

  4. Know impact of religious…
    Know impact of religious institutions in helping govt regulate society. Church started schools, prisons, etc when govt saw their importance they started adopting and corrupting education curriculum and prisons which were useful institutions created out of love for the humans

  5. Whether these so called “…
    Whether these so called ” churches ” are tax protected or not, they are on their death bed.
    The replaced our holy shrines with their dirty history and character.
    They are being revealed every day.
    They do not teach or follow God’s law.
    They teach man’s doctrine which changes with man’s needs and wants.
    We have seen mass exodus out of these churches as people wake up to the truth and especially black people.
    Their dirty history and character is on full display.
    We are on our way back to our old beliefs and our creator before colonialism and they (churches) are on their way back to their creator ( the colonizer).

  6. Of all the colors that exist…
    Of all the colors that exist the missionaries concentrated on 2 color namely black and white. They told us the devil is black and everything evil is black. They told us the Angels are white and everything good is white. They told us there is a black man who is inferior and the white man who is superior. They Asked the African which craft are you using? The word “Witchcraft” come about and was associated with black people.

  7. KRA should first publish a…
    KRA should first publish a list of taxation from wanaKenya licensed looters led by Uhuru,Raila,Ruto,their families,Mois,Kibakis,Kirubis,Wanjigi & Co elite gangsters.The authority should also state the amounts paid by all companies related to expired Kirubi plus so-called 50 Mt.Kenya gangsters led by Munga,Murathe etc.How much tax did Uhuru pay for shs 200b EUROBOND loot?How much did they pay for shs 217b COVIDGATE loot?How much did they pay for shs 70b. loan Uhuru & Co looted two weeks ago and shs 2b daily loot?RISASI TU.

  8. All colonial based religious…
    All colonial based religious institutions should pay taxes because their presence in our country has severely undermined our superior traditional religions. Why?
    1. Our traditional religious institutions did not participate in slavery.
    2. They did not threaten people about being barbecued after death in “hell.”
    3. They did not lie to people about going to “ heaven after death.
    4. Stealing and lying were totally frowned upon and discouraged as evil institutions that were not tolerated by the society,
    They tolerated each other and did not encourage the process of proselytizing across other micro nations.
    6. They did not demand a certain amount of your personal wealth to be given to the shamans.
    Conclusion:
    The current slave based foreign and fake Arabic and Jewish based religious institutions should pay to “Caesar” their dues.

    • @ Imara Daima,as I have said…
      @ Imara Daima,as I have said before, all religions pretty much deal with here after.For that reason, no religion can claim ownership to the gates of heaven.And for that reasons,african religions are as much valid as any religion that exists or has existed.
      I challenge any body to prove me wrong.No religion or amount of prayers will improve your welfare on this earth. The powers to do that are in your hands.You cannot pray for a job, you have to earn it.You cannot to pray for a good marriage, you have to work on it. You cannnot pray for good grades.You want to study hard. You cannot pray for magical healing. You have to listen and to what the doc. orders. Your get my drift.
      As I always say question,and question. Blind faith may temporarily offer comport,but eventually one gets tired of waiting and start to question even the existence of God.
      As for those who relish in harming others for a reward of 72 virgins,ask yourself,is it not better to get the virgins here on earth.How about if I just want 2 virgins,and give 70 t0 my good neighbor in heaven can I do that? Yes, I always question.That’s why the creater gave you the brain. And trust me, he is not going to punish you for quetioning. He will be more than glad to show his ominiscence.Gods of the 2 big religions loves attention,and being worshiped,wonder why?Sounds like a narcissistic tyrant.

      • Hongera sana Ndugu @ …
        Hongera sana Ndugu @ Maxiley kwa mafundisho yako ya busara ambayo ni lazima kila mtu ayajue na kuweka maisha yake mikononi mwake wala si kwa mtu mwingine wala taasisi (institute) bandia (fake) iliyobuniwa na mtu kama mimi au wewe.

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