Withholding Tax on Credit & Debit Cards –KRA Vs Barclays Bank
Barclays bank used credit and debit cards from credit card companies namely VISA, Master card and American express. KRA demanded withholding tax on the amounts payable by the bank to credit card companies and on management fees for …
Interest Expense Incurred Wholly and Exclusively For Business- Tile and Carpet Centre Vs Commissioner Domestic Taxes
Tile and carpet centre deposited money with its advocates for the purpose of buying land for its sister company Tile & Carpet Centre development Ltd. The money was later refunded by the advocates. The commissioner contended that …
Offsetting tax refunds- National Bank of Kenya Limited (Appellant) vs. Commissioner of Domestic Taxes (Respondent)
The national bank of Kenya claimed to offset the corporate tax liability against tax credits arising from foreign taxes under credit under special arrangement in section 42 of the income tax act. The bank relied on section 47, tax pro…
VAT on imported services-Google Kenya Ltd vs. Commissioner of Domestic Taxes
Google Kenya was offering marketing and support services to Google Ireland and held to the position that these were exported services thus Zero rated services. Google Kenya further argued that Kenyan customers contract directly with …
Tax refund decision – Commissioner of domestic taxes Vs Sony Holdings ltd(2020)
Sony holdings a shopping mall in Nairobi applied for tax refund amounting to Kshs. 33,187,669.00 under Sec 47 of the Tax procedures act. The mall experienced losses in the years 2013 and 2014. The commissioner went on to audit the tax…
Application of refund against future tax liabilities – Commissioner domestic Taxes Vs Unga Ltd (2020)
Unga Ltd launched an appeal claim for VAT in the years 2012 and 2013. The commissioner audited the refund claim and informed Unga that its VAT refund claims totaled Kshs. 189,958,332.00, “are all processed and in the Finance Department…
Fraudulent Input Tax Claim- Commissioner of Domestic taxes V Metoxide Limited
In ruling over the matter, the high court highlighted the provision of Section 17(1) of the VAT act which indicates input tax is claimable but to the extent that the supply or importation was made to make taxable supplies. The basis …
Late claim of Input tax- Hi Highlands Mineral Water Limited V Commissioner of Domestic Taxes (2021)
The commissioner conducted a compliance check on the appellant and issued a letter dated 16th November 2017 indicating that VAT returns were filed late. The commissioner went on to disallow Input tax claims for January 2014 to April …
Missing trader fraud – Commissioner of Domestic Taxes (Appellant) V Galaxy Tools Limited (2021)
On 18th July 2018, the commissioner issued an objection decision confirming an assessment amounting to Kshs.1,698,702.00 for VAT and Kshs.3,210,651.00 for Corporation Tax against the respondent, Galaxy Tools Limited….
Loss of tax records- Commissioner of Domestic Taxes Vs Altech Stream (EA) Limited [2021]
The commissioner audited the respondent for the period 2011 to 2015 and raised an assessment of Kshs.190,833,899/- as tax liability for Corporation Tax, Vat and Withholding Tax. This was objected but the commissioner rejected the objection…