Coca-Cola Central East and West Africa Limited v Commissioner of Domestic Taxes [2020] KEHC 1389 (KLR)
- Court
- High Court of Kenya
- Case number
- 1389
- Citation
- [2020] KEHC 1389 (KLR)
- Decided
- 23 November 2020
AI Summary
Beta
Machine-generated — may contain errors. Not legal advice.
TypeTax AppealPostureAppeal from the VAT Tribunal decisionCoramF. TUIYOTT
Holding
The Court allows the Appeal and sets aside the decision of the VAT Tribunal. The decision of the Commissioner of Domestic Taxes is hereby set aside.
Facts
Coca-Cola Central East and West Africa Limited provided marketing and promotion services for Coca-Cola brands in Kenya and 21 other countries. The Commissioner of Domestic Taxes issued a confirmation of assessment for VAT on undeclared locally consumed services.
Issues
- Whether the business model adopted by Coca-Cola Export Corporation resulted in the evasion or minimization of Value Added Tax (VAT) payable in Kenya.
- Whether the marketing and promotion services provided by Coca-Cola Africa are consumed locally or exported services
Reasoning
The Court agrees with the Commissioner that the services are consumed locally, as the target audience is Kenya. The Court finds that the services are provided for use or consumption outside Kenya, and thus are exported services.
Outcome
Appeal allowed, decision of the VAT Tribunal set aside
Orders
- Decision of the VAT Tribunal of 26th November 2013 is hereby set aside
Remedies
- VAT on undeclared locally consumed services is reversed
Authorities cited
Legislation (1)
- VAT Act (Cap 476)
Experimental AI summary generated by a language model, not a lawyer. It may contain errors or omissions and must not be relied on for legal decisions — the full judgment below is the authoritative source.
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