Fintel ltd engaged China Jiangsu International Economic Technical Co-operation for the construction of a rental building on April 21, 2009. Fintel was then to pay a contractual fees to the Chinese company, which they delayed and accounted for as a liability in their financial statements. KRA made a demand for shs 4,787,257 being withholding tax on accrued interest. Fintel moved to court to challenge the assessment and had high court’s ruling in their favour. KRA challenged the ruling in the court of appeal where a landmark ruling in their favor was issued affirming that amounts paid includes an accrual
For details click link Kenya Revenue Authority v Republic (Exparte Fintel Ltd) [2019] eKLR.