Advanced Taxation kasneb new syllabus notes



This paper is intended to equip the candidate with knowledge, skills and attitudes that will enable him/her to solve complex tax issues, implement tax planning initiatives and administer tax in various business environments.


A candidate who passes this paper should be able to:

  • Compute the tax liability of enterprises, entities and specialised business activities.
  • Handle all value added tax matters
  • Apply the procedure for conducting a tax investigation
  • Explain the tax dispute resolution mechanism
  • Explain the tax implications for cross border business activities.
  • Develop tax policies


  1. Taxation of business income and specialized business activities

    • Partnership business
      • Admission of a new partner and retiring partners during the year
      • Conversion of partnerships into liability companies
      • Incomplete records pertaining to partnership businesses
      • Case law on taxation of partnership businesses
  1. Limited companies

    • Taxation of companies, including holding company, subsidiaries, branches and related parties
    • Incomplete records pertaining to limited companies
    • Minimum tax
    • Shortfall tax computation
    • Taxation of dividends
    • Case law on taxation of limited companies
    • Rental income, including residential rent income, Commercial rent income and Real estate investment trusts (REITS)
    • Charitable institutions
    • Leasing entities, including hire purchase lease agreements
    • Co-operative societies, Saccos
    • Trade associations, amateur sporting association and clubs
    • Trust bodies, settlements and estates under administration
    • Financial institutions: Banks, insurance companies
    • Sea and air transport undertakings
    • Collective investment schemes
    • Professional, training, management, agency, and consultancy fees
    • Property developers and contractors
    • Taxation of extractive industries
    • Capital gain tax
    • Digital service tax
    • Application of relevant case law
  1. Value added tax administration

    • Obligations of a taxable person and offences relating to VAT
    • Value added tax computation
    • Restriction of input tax claimable
    • Imported services and VAT withholding agents
    • VAT refunds and bad debt relief computation
    • VAT Accountant certificate
    • Value added tax automated assessments
    • I tax significance and application in value added tax administration
    • Application of relevant case law
  1. Tax investigations

    • Tax fraud
    • Civil and criminal tax investigation
    • Events which may trigger an investigation
    • Back duty and in-depth examination
    • Customs and excise investigations
    • Negotiation for settlement: Tax amnesty, Tax Penalties and Enforcement for outstanding taxes
    • Types of tax audit and their significance
    • Application of relevant case law
  1. Tax dispute resolution mechanism

    • Tax disputes
    • Stages of tax dispute resolution process
    • Tax dispute resolution process cycle
    • Legal framework and objectives of Alternative Dispute Resolution
    • Types of tax disputes eligible for Alternative Dispute Resolution
    • Benefits of Alternative Dispute Resolution
    • Parties to Alternative Dispute Resolution and their roles
    • Issues exempted from Alternative Dispute Resolution
    • Alternative Dispute Resolution agreement terms and timelines
    • Termination of alternative dispute resolution
  1. Taxation of cross border activities

    • Distinction between trading in and trading with a country
    • Double taxation agreements; theory, design and application
    • Regional perspective with reference to the East African Community (EAC) andthe Common Market for Eastern and Southern Africa (COMESA)
    • Most favored nation status
    • Nature, characteristics and significance of One Stop Border Posts (OSBPs)
    • Generalized system of preference and AGOA
    • Tax havens and treaty shopping
    • Tax information exchange agreements(TIEAS)
    • Transfer pricing: oecd guidelines
    • Application of relevant case law
  1. Tax planning

    • Tax planning for individuals: By way of Tax exempt activities, transactions that are allowable expenses and transactions attracting tax setoffs
    • Tax planning for body corporates
    • Identifying opportunities to alleviate, mitigate or defer the impact of direct or
    • indirect taxation
    • Evaluating remuneration packages
    • Tax avoidance and anti-tax avoidance provisions in the tax Act, short-fall distributions of dividends
    • Sectoral tax incentives
    • Disposal of business operations and restructuring of activities
    • Tax risk management
  1. Tax systems and policies

    • Types of tax systems
    • Role of taxation in economic development; tax base expansion, efficiency in tax systems
    • Design of a tax policy
    • Criteria for evaluation of a tax system
    • Tax reforms and modernisation of tax systems under various Acts
    • KRA structure – Large Tax Payer and Medium Tax Payer organisations
  1. Professional practice in taxation

    • Forms of tax practice and matters relating thereto
    • Matters relating to new clients
    • Handling of client work
    • Disclosures in tax returns, computations and correspondence with the RevenueAuthority
    • Moral and ethical issues in taxation
    • Tax agents, appointment, obligations, professional liability
    • Cancellation of tax agents license
    • Role of tax agents in appeals procedure
    • Tax health check
(Visited 428 times, 2 visits today)
Share this on:

Leave a Reply

Your email address will not be published.