How undocumented ‘capital injections’ landed firm in Sh22m tax pain

Kirin Pipes fails to convince tribunal that Sh150m in loans and capital injections were non-taxable.

Photo credit: Fotosearch

Six years ago, when the corrugated pipe manufacturer Kirin Pipeline Limited was setting up its business in Kenya, it received Sh150 million from three Chinese entities to fund its business operations.

Like any other newly established business, Kirin needed money and resorted to raising funds through loans and capital injections from shareholders.

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Note: The results are not exact but very close to the actual.