A director of the above-named company lived in a building owned by the company. KRA raised a tax demand for Shs 18,480,485 as income tax arrears falling under Pay as you earn. The contention was whether a director is an employee of a company and whether there was any benefit assessable. It was ruled that the amount was rightfully assessable under Pay as you earn
For details click link- http://kenyalaw.org/caselaw/cases/view/95739