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 an agency notice offsetting the refund against the tax liabilities of Sony Holdings’ parent company Atlantic Group (K) Ltd amounting to Sh. 25,577,401.00.
The commissioner did not complete the offset so SONY continued to reflect the amount as a tax credit. The commissioner had failed to decide on the refund within 90 days as required under Section 47(3) of the TPA. This was the decision of the Tax appeals tribunal which was upheld by the high court.
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