He said the board's executive director Fazul Mohammed acted beyond his mandate by giving further directions to the Kenya Revenue Authority to recover
accrued taxes.
The Proposed Regulations define
accrued taxes as accrued tax expense recorded on taxable profits or losses, reflecting only operations in the relevant annual accounting period and excluding deferred taxes or provisions for uncertain tax liabilities.
461(d), which governs the tax year in which a taxpayer can take a deduction for
accrued taxes, any change to a state's tax laws that occurs after Dec.
He said
accrued taxes and premiums owed to the tax administration would be restructured, noting that the arrangement did not come before the Economy Coordination Council yet.
After a responsible person knows of the unpaid tax liability, any money coming into the corporation, from any source, must be paid to satisfy both current and
accrued taxes.
The judge said the board executive director Fazul Mahamed acted beyond his mandate when he further directed Kenya Revenue Authority to recover
accrued taxes.
While the law allows a deduction for
accrued taxes, a contested liability is not accrued because it does not meet the requirements of the all-events test for current recognition.
27) It is important to distinguish between direct payment authorization and the payment of
accrued taxes to the state.
Partners subject to such direct claims bear the economic risk of loss for the
accrued taxes and, therefore, may be required to contribute money to the partnership or make a direct payment to satisfy the tax obligation.
Short-term liabilities are defined as accrued operating expenses,
accrued taxes and any account payable no more than 90 days old, provided that it is non-interest-bearing for that period.
