Ruaraka diversified investments ltd sold property to Garden city ltd and Safaricom Plc where the Garden city mall sits. The company argued that the sale of land was subject to capital gains tax and went ahead to request for a private ruling in favour of their position.
KRA on the other hand held that this was a transaction in the ordinary course of business and the gains thereof are subject to corporation tax. KRA won the case in a ruling delivered by the tax appeals tribunal on 1st April 2021 allowing them to collect Sh. 672 million tax
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