Section 15(7) of the Income Tax Act requires that a person who derives income from one or more specified sources submit a separate account and a separate computation in respect of each specified source. The Kenya Revenue Authority (KRA) published a notice on 22nd September, 2021 informing the public of the withdrawal of the waiver of this requirement. This waiver had been issued through a letter dated 7th February, 1979 addressed to the Institute of Certified Public Accountants (ICPAK). The withdrawal of this waiver is scheduled to take effect from 1st October, 2021. Henceforth, all taxpayers will be required to prepare a separate account in respect of each specified source of income. In the event of a loss, that loss may only be deducted from gains or profits of that person derived from the specified source in the following year or subsequent years of income, in so far as that loss has not already been deducted.
