V.A.T. Act 2007 - Kenya Revenue Authority

Rev. 2007 VALUE ADDED TAX CAP 476
21. Where any person disposes of a registered business as a going concern to another
registered person -
(a) both registered persons shall, within thirty days provide the Commissioner
with details of the transaction, of the arrangements made for payment of tax
due on supplies already made, of the description, quantities and value of
assets and stocks of taxable goods on hand at the date of disposal, and of
arrangements made for transferring the responsibility for keeping and
producing books and records relating to the business before disposal;
(b) unless the Commissioner has reason to believe that there would be undue risk
to the revenue, and notifies the registered persons accordingly within fourteen
days of receipt of the notification required in subparagraph (a), the assets and
stocks of taxable goods on hand may be transferred without payment of the tax
otherwise due and payable; and
(c) notwithstanding that the business is being disposed of by the registered person
as a going concern that registered person shall remain registered and be responsible
for all matters under this Act in relation to the business prior to its disposal, up to
the time of its disposal, until such time as the requirements of this Act have been
properly complied with.
22. Where in the opinion of the Commissioner :-
(a) any person is a taxable person under paragraph 1 or paragraph 2 and that person
has failed to apply for registration in the prescribed manner, the Commissioner
may register that person forthwith; or
(b) any taxable person has failed to notify cessation of trading under paragraph 15,
the Commissioner may deregister that person forthwith and require that person to
pay the tax due and payable on supplies made and on stocks of materials and other
goods on which tax has not been paid or on which tax has been credited as
deductible input tax.
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