Under this category, the total collection of the residential rental income is over kshs 10 million per year. It is irrespective of whether the rent is from one building or from many buildings. It is also irrespective whether the buildings are permanent or temporally structures, the construction materials used, and the age of the buildings.
A notice of appeal is valid if, the taxpayer has paid the tax not in dispute or entered into an arrangement with the Commissioner to pay the tax not in dispute under the assessment at the time of lodging the notice. Section 52(2) TPA.
The TPA allows the Commissioner to issue to a tax payer a default assessment, amended assessment or an advance assessment (Section 29 to 31 TPA). It is on the basis of these sections that the KRA undertakes audits on taxpayers.
Rental income is any income earned from the permitting another to use property that one owns or has rights over