Kenya Revenue Authority v Universal Corporation Ltd (Civil Appeal (Application) 150 of 2018) [2024] KECA 1103 (KLR) (19 August 2024) (Ruling)

Facts

The Kenya Revenue Authority (KRA) demanded Universal Corporation Ltd (UCL) to pay Kshs 427,918,035 in Value Added Tax (VAT) for the period January 2008 to November 2013. UCL challenged the demand in a High Court Judicial Review Application. The KRA appealed the High Court's decision, and the Court of Appeal upheld the High Court's judgment.

Issues

1. Whether the High Court erred by assuming jurisdiction over a matter which ought to be heard by the Customs & Excise Tribunal
2. In its appreciation and application of the doctrine of legitimate expectation
3. In its appreciation and application of the doctrine of proportionality

Reasoning

The Court found that the taxing officer erred by basing the instruction fees on the alleged value of the subject matter, and did not consider other relevant factors such as the amount involved, the importance and difficulty of the appeal, and the interest of the parties.

Outcome

The Court of Appeal allowed the appellant's reference and remitted the matter back for re-taxation.

Authorities cited