Kenya Revenue Authority v County Assemblies Forum & 2 others; Salaries Remuneration Commission (Interested Party) (Civil Application E093 of 2023) [2024] KECA 923 (KLR) (26 July 2024) (Ruling)
- Court
- Court of Appeal
- Case number
- 923
- Citation
- [2024] KECA 923 (KLR)
- Decided
- 26 July 2024
The High Court's judgment is upheld, and the appeal is dismissed. The Court orders a stay of execution of the High Court's judgment pending the appeal.
Facts
The Kenya Revenue Authority (KRA) challenged a High Court judgment declaring that members of County Assemblies' motor vehicle reimbursement amounts do not fall within the ambit of Sections 3 and 5 of the Income Tax Act, and restraining KRA from imposing tax on these amounts. KRA appealed, and the County Assemblies and the Parliamentary Service Commission ceased deducting taxes on these reimbursements.
Issues
- Whether the motor vehicle reimbursement amounts fall within the ambit of Sections 3 and 5 of the Income Tax Act
- Whether the High Court's judgment should be stayed pending the appeal
Reasoning
The Court finds that the appeal is arguable and has a high probability of success. The Court also notes that the High Court's judgment is based on a dispute about the meaning and tenor of the statutory provision.
Outcome
Appeal dismissed
Orders
- Order for a stay of execution of the High Court's judgment pending the appeal
Remedies
- Stay of execution of the High Court's judgment
Authorities cited
Legislation (2)
- Income Tax Act
- Public Procurement and Disposal Act
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