- Tax Advisory
We offer tax advisory services with value addition, working with your businesses to make sure you stay ahead in this ever-evolving and pressured tax regimes
We at ENJ East Africa LLP is ensuring that the tax burden is mitigated and will make sure you comply faithfully to paying taxes that your business deserve. No more No less taxes.
The growing and robust complexity of tax regimes and constant changes to tax laws makes it almost impossible for any individual to keep pace with the evolving world of both local and international taxation.
Businesses face the increasing pressure of ever changing rules and regulations, with tax complexities often consuming a large amount of management time and effort. We will help you incorporate tax efficiency into your business planning and decision-making to put you in control of tax costs and generate long term savings.
We have realized that managing your tax compliance burden efficiently can have a significant impact on your business. Whether you outsource your business tax processes to us completely or simply need advice to help you streamline the paperwork and deal with specific issues, we can deliver the quickly and efficiently.
When the tax issues seem complex you will find our tax advice and solutions relevant, practical and cost-efficient.
Tax Services
- Tax Preparation and Filing
We at ENJ East Africa LLP offer the best services in regard to tax preparation.
After preparing your final accounts we will go extra mile to prepare the corporation tax your company is supposed to pay and advise on payment methods and installment tax payable thereon.
Our tax preparation and filing team are always on top of the game when it comes to communicating to our clients on what documentation and reports needed to ensure taxes are deal with in time and in a proper manner.
Our team will ensure they are in constant communication with customers and suppliers for our clients to ensure that both parties declare and claim the returns appropriately and consistently to avoid mismatch tax returns which eventually if not handled carefully will cause Vat Inconsistencies and VAT Auto Assessments (VAA).
With our expertise we are in a position to advise clients on authentic invoices and supporting documents and also to identify fictitious invoices and ask then to shun and take legal action against such suppliers.
Our tax professionals will always ensure that all the returns filed will not trigger any tax assessments which might result from inappropriate filings.
Our team of tax experts have thorough knowledge of Tax Procedures Act and all Tax Laws and this means that should there be any erroneous or unjustified tax assessments from the revenue authority they will process objections and responses to the relevant authorities to address and discard the assessment
We will assist our clients in preparing and filing the following types of taxes;
- Value Added Tax (VAT)
- Pay as You Earn (PAYE)
- Income Tax for Individuals, Partnerships & Companies
- Capital Gain Tax (CGT)
- Excise Duty
- Stamp Duty
- Rental Tax (MRI)
- Withholding Taxes
- Digital Service Tax
- International Taxes among others
- Tax Planning
Tax planning is the analysis of a financial situation or plan to ensure that all elements work together to allow you to pay the lowest taxes possible. A plan that minimizes how much you pay in taxes is referred to as tax efficient. Tax planning should be an essential part of an individual investor’s financial plan. Reduction of tax liability and maximizing the ability to contribute to retirement plans are crucial for success.
Tax planning strategies can include saving for retirement in an IRA or engaging in tax gain-loss harvesting.
How Tax Planning Works
Tax planning covers several considerations. Considerations include timing of income, size, and timing of purchases, and planning for other expenditures.
Also, the selection of investments and types of retirement plans must complement the tax filing status and deductions to create the best possible outcome.
Tax Planning for Retirement Plans
Saving via a retirement plan is a popular way to efficiently reduce taxes. Contributing money to a traditional IRA can minimize gross income by the amount contributed.
There are several other retirement plans that an individual may use to help reduce tax liability.
Tax Gain-Loss Harvesting
Tax gain-loss harvesting is another form of tax planning or management relating to investments. It is helpful because it can use a portfolio’s losses to offset overall capital gains.
Generally, we will always seek to exploit tax planning avenues in order to help our clients minimize payment of taxes they don’t deserve. We will cover the following areas but not limited to;
- Wage and Compensation Planning
- Alternative Minimum Tax
- Passive Activity Loss Rules
- Sole Proprietorships
- Foreign Earned Income Exclusions
- IRA Conversion and Distributions
- Capital Gain Transactions & Loss Harvesting
- Income Deferral Strategies
- Like/Kind Exchanges
- Timber and Farming Activities
- Stock Option Planning
- Tax Credit Opportunities
- Tax Compliance and Other Statutory Compliance
Managing tax and statutory compliance in today’s highly complex economic and regulatory environment is no easy task. New developments in tax laws, changes in accounting standards and increased demands from tax authorities are all increasing the burden to taxpayers and businesses. At the same time, businesses must provide more and better reporting and compliance, in less time.
We offer more consistent, efficient and cost-effective ways to meet your compliance obligations.
The services we provide help our clients to transform the way they manage compliance and include:
- Preparation and filing of taxes on time adhering to set deadlines to ensure compliance is achieved
- Registration and activation of relevant and necessary tax obligations on time and when the fall due to avoid penalties on late compliances
- Ensure advance and installment taxes are determined early in advance to avoid penalties and interest for late submission
Other statutory Compliances
We will also ensure that our clients comply in preparation and submission of the following statutory returns in time to ensure compliance is achieved;
- NHIF
- NSSF
- Tourism Levy
- NITA Levy
- Among others
We will ensure that there is a unified way of ensuring all the statutory returns are properly captured and submitted on time
- International Taxation
We handle international taxes for our clients by determining taxes on a person or business subject to the tax laws of different countries, or the international aspects of an individual country’s tax laws as the case may be.
Governments usually limit the scope of their income taxation in some manner territorially or provide for offsets to taxation relating to extraterritorial income.
The manner of limitation generally takes the form of a territorial, residence-based, or exclusionary system. Some governments have attempted to mitigate the differing limitations of each of these three broad systems by enacting a hybrid system with characteristics of two or more.
Our key focus on international taxation include;
- Taxation of expatriates
- Import & Export taxes
- Double taxation treaties
- Transfer Pricing
Transfer pricing is an accounting practice that represents the price that one division/branch in a company charges another division/branch for goods and services provided. Transfer pricing allows for the establishment of prices for the goods and services exchanged between a subsidiary, an affiliate, or commonly controlled companies that are part of the same larger enterprise. Transfer pricing can lead to tax savings for corporations, though tax authorities may contest their claims.
How Transfer Pricing Works
Transfer pricing is an accounting and taxation practice that allows for pricing transactions internally within businesses and between subsidiaries that operate under common control or ownership. The transfer pricing practice extends to cross-border transactions as well as domestic ones.
A transfer price is used to determine the cost to charge another division, subsidiary, or holding company for services rendered. Typically, transfer prices are priced based on the going market price for that good or service. Transfer pricing can also be applied to intellectual property such as research, patents, and royalties.
Multinational companies (MNC) are legally allowed to use the transfer pricing method for allocating earnings among their various subsidiary and affiliate companies that are part of the parent organization. However, companies at times can also use (or misuse) this practice by altering their taxable income, thus reducing their overall taxes. The transfer pricing mechanism is a way that companies can shift tax liabilities to low-cost tax jurisdictions.
- Client Representation on Tax matters
In this ever changing world of tax laws clients’ representation on tax matters is inevitable due to queries and clarifications from the tax authorities.
Tax audit representation, also called audit defense, is a service in which we stand in for our clients who have been served with tax audit assessments and summons to justify their tax positions.
We at ENJ, develops the strategy used to defend the taxpayer’s position. Our team of tax experts assists the taxpayer in preparing all documents requested by the revenue authority and typically attends all meetings and handles correspondence on behalf of the taxpayer.
While the tax authorities have tremendous power to also file criminal charges against an individual or business, the fact that you receive a letter from the them does not mean that you are going to jail. Most of the time, the tax man is looking for clarification, missing information or additional information to complete a tax return. Sometimes, the tax records do not match what the taxpayer is reporting. In these situations, the tax man will send out a questionnaire regarding those differences.
Other times, the tax authority computer systems will auto generate a bill or invoice. This happens usually when there is a mismatch in sales and purchases declared by both the seller and buyer respectively.
At times discrepancies between annual gross turnover and summary of total Sales tax declared and paid throughout the year do not match with what is declared for income tax and this causes audit query.
We assure our clients that your case will be handled by experts in the field that have spent decades handling tax Audits. Our firm has an entire department dedicated only to tax audits. We collect information from you and you will never have to meet or even talk with the tax officer since we represent you fully. We have a great record of achieving successful audit representation for our clients.
When the tax man issues a notice of deficiency, the client has limited time to respond. This is a very sensitive process. If you fail to respond in a timely manner to these letters you may lose rights to dispute the tax liability and the tax authority may assess the tax liability.
When we are engaged to provide tax representation services, we use our vast experience and our team meets to evaluate and assess the situation. We decide what approach should be taken and whether or not it is financially responsible for us to take on the case.
