Taxing income from undisclosed sources – Pili management consultants
The court of Appeal noted as follows; “Pili, as we have seen, made a nil return of income for the year 2004. It alleged it was not trading for that year and that therefore, could not have earned any income upon which tax could have been …
Kra power to search premises and sieze goods, documents and storage devices
Tax procedures act Sec 51(11) provides that the commissioner should respond to a taxpayers objection within 60 days, failure to which the taxpayers objection stand as allowed. In the above case Sanofi Aventis lodged an objection on 6th….
Delayed Objection decision KRA Vs Sanofi Aventis
Tax procedures act Sec 51(11) provides that the commissioner should respond to a taxpayers objection within 60 days, failure to which the taxpayers objection stand as allowed. In the above case Sanofi Aventis lodged an objection on 6th….
School fees benefit to employees – Brookhouse Vs KRA
The bone of contention in this matter was treatment of education benefit enjoyed by employees of brookhouse group of schools. The law provides for two ways of bringing the benefit to tax, that is taxing it on the employee (through PAYE ….
Withdrawal of Private Rulings MKOPA Vs KRA
KRA issued a private ruling to MKOPA according to section 65(1) of the tax procedures act 2015, exempting imported television sets from VAT. KRA subsequently withdrew the exemption and assessed tax. It was held that the private ruling …..
VAT Reverse charge Barclays bank (Now ABSA) Vs KRA
BBK gets services from VISA mastercard who charge them interchange fees claiming they are exempt as fin services KRA claimed this is an imported service as it was a royalty VAT on imported services the tax Demand was KES 761M. The tax ….
Burden of Proof – Kenya Revenue Authority Vs Pearl Industries Limited
Pearl industries a company manufacturing and selling fabrics was subjected to an investigation by KRA with a view of establishing the authenticity of documents used to support input tax claim on suspicion of VAT fraud. Consequently the ….
TAX AVOIDANCE BY NON-DISTRIBUTION OF DIVIDENDS-Oceanfreight (E.A) Limited versus Commissioner of Domestic Taxes
Section 24 of the income tax Act, CAP 470, empowers the commissioner to collect tax on dividend where a company is deemed to be avoiding tax by non-distribution of dividend. However, subsection 4, provides that a company may be exempted….
Taxation Of Resident Life Insurance Business- Kenindia Assurance Company Limited Vs Commissioner Of Domestic Taxes
According to Section 19(5) of the income tax act CAP 470, A resident life Insurance company is taxed on amounts transferred from the Life fund for the benefit of shareholders. Kenindia transferred Sh. 25 million for the benefit of share …
Capital Gains on Business Reorganization Equity Bank Vs KRA
Equity bank Limited (EBL) entered into an arrangement of transferring its assets to Equity bank Kenya Limited (EBKL) a wholly owned subsidiary by Equity Bank Holdings Limited (EBHL). The transaction was marred with the following controve…