Pearl Industries Ltd v Commissioner of Investigations & Enforcement (Civil Appeal E101 of 2022) [2026] KECA 962 (KLR) (15 May 2026) (Judgment)
- Court
- Court of Appeal
- Case number
- 962
- Citation
- [2026] KECA 962 (KLR)
- Decided
- 15 May 2026
- Judges
- J Mohammed, F Tuiyott, P Nyamweya
- Parties
- raw · defendants · plaintiffs
The Court of Appeal upheld the High Court's decision, finding that the company could not claim input VAT for purchases that did not happen and from unregistered persons.
Facts
The Commissioner of Investigations and Enforcement issued a Notice of Assessment demanding additional tax from Pearl Industries Ltd for Corporation Tax and VAT for the period 2012-2017. The company objected and the Tax Appeals Tribunal upheld the assessment. The company appealed to the High Court, which found that the company could not claim input VAT for purchases that did not happen and from unregistered persons.
Issues
- whether the respondent's additional assessment of Corporation Tax and VAT was valid
- whether the respondent proved the existence of fraud in the impugned transactions
Reasoning
The Court held that the company failed to prove that the purchases were made from registered persons and that the respondent's findings were correct.
Outcome
Affirmed
Authorities cited
Legislation (2)
- Tax Procedures Act 2015
- VAT Act 2013
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