Wanda has recently returned from California University after studying for a PhD. For three years. While in the USA she operated a large business and saved a substantial sum of money. She is undecided whether to accepted an offer of full-time employment from the University of Nairobi as an Associate Professor or to set up a business consultancy firm near her home where she would use her home as the base for her business.

You have advised her that the rules governing the deductibility of expenses for employees differ from the rules for self-employed persons. Wanda has now asked for a report summarizing the position. She is also concerned about the tax position of the income she earned in USA now that she has come with it to Kenya