Tax Case Law

On 8th March 2007, the respondent communicated to the applicant wherein it demanded payment of Value Added Tax and documents which allegedly related to supplies which had been made more than 5 years before the assessment.  Unilever contended that it only requires a tax payer to keep tax records for a period of 5 years,...... Continue reading→

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. The taxpayer had not maintained records for 5 years as required under Tax procedures act sec 23. The respondent...... Continue reading→

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. The respondent appealed to the Tax appeals tribunal indicating that they had produced all invoices, delivery notes, and payment schedules as required under Section 17 of...... Continue reading→

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 2017 on grounds that they were time-barred. Section 17(2) indicates that input tax is claimable within 6...... Continue reading→

The respondent claimed input tax for supplies received between July and December 2014 and consequently claimed input tax on them. The CDT rejected the claim on basis that the supplier for the goods Hardishi Limited had been profiled for issuing illegal ETR receipts. Further, records of the deliveries from the respondent indicated that one delivery...... Continue reading→

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 and unfortunately also informed the Taxpayer that the National Treasury had put a freeze on payment...... Continue reading→

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 taxpayer per section 47(2) of the TPA to ascertain the claim’s validity. The commissioner issued...... Continue reading→

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 procedures act which deal with refund of overpaid taxes. The section has a discretionary word “may”...... Continue reading→

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 Google Ireland for the products. Google Kenya adds that the services are related to non-resident entities, and were exported according...... Continue reading→

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 this money had been borrowed from a credit facility and the interest therein claimed as an expense. The...... Continue reading→