Lordship Africa Management Limited v Commissioner of Investigation & Enforcement (Income Tax Appeal E022 & E037 of 2020) [2021] KEHC 286 (KLR) (Commercial and Tax) (29 October 2021) (Judgment)
- Court
- High Court of Kenya
- Case number
- 286
- Citation
- [2021] KEHC 286 (KLR)
- Decided
- 29 October 2021
AI Summary
Beta
Machine-generated — may contain errors. Not legal advice.
TypeIncome Tax AppealPostureAppeal from the Hon Tax Appeals TribunalCoramMW Muigai
Holding
Withholding tax on deemed interest is due and the Appellant is not resident in Kenya for tax purposes
Facts
Lordship Africa Management Limited received a loan from Mr. Jonathan Jackson, a non-resident, and failed to file Corporation Tax returns for 2012, 2014, and 2015. The Commissioner of Investigation & Enforcement assessed and demanded withholding tax on deemed interest.
Issues
- Whether withholding tax on deemed interest is due upon repayment of the loan
- Whether the Appellant is resident in Kenya for tax purposes
Reasoning
The Tribunal erred in finding that withholding tax is due upon repayment of the loan and in determining that Mr. Jackson was resident in Kenya for tax purposes. The Appellant's position that withholding tax is due upon repayment is not supported by the law.
Outcome
Appeal dismissed, withholding tax on deemed interest due, Mr. Jackson non-resident for tax purposes
Orders
- Withholding tax on deemed interest due and owing to the Respondent
- Mr. Jonathan Jackson was non-resident for tax purposes
Authorities cited
Legislation (2)
- Income Tax Act
- Corporation Tax Act
Cases cited (2)
- Primarosa Flowers Limited v Commissioner of Income Tax
- Republic v Kenya Revenue Authority
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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