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Commissioner of Domestic Taxes v Gokals Limited (Tax Appeal E144 of 2020) [2021] KEHC 400 (KLR) (Commercial and Tax) (10 December 2021) (Judgment)

[2021] KEHC 400 (KLR) High Court of Kenya
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Court
High Court of Kenya
Case number
400
Citation
[2021] KEHC 400 (KLR)
Decided
10 December 2021
AI Summary Beta Machine-generated — may contain errors. Not legal advice.
TypeTax AppealPostureAppeal from the Tax Appeals TribunalCoramMW MUIGAI
Holding

The appeal is dismissed as the Tribunal did not err in law in shifting the burden of proof or in reading Section 17 of the VAT Act.

Facts

The Commissioner of Domestic Taxes appealed against the Tax Appeals Tribunal's decision regarding VAT assessments and fraud allegations.

Issues

  1. Whether the Tribunal erred in law in shifting the burden of proof to the Appellant contrary to Section 30 of the Tax Appeals Tribunal Act, 2013.
  2. Whether the Tribunal erred in law in reading Section 17 of the Value Added Tax Act, 2013 in isolation while ignoring the other relevant tax provisions.

Reasoning

The Court found that the Tribunal correctly applied the burden of proof under Section 30 of the Tax Appeals Tribunal Act and did not err in reading Section 17 of the VAT Act in isolation.

Outcome

Appeal dismissed

Orders

  • The objection decisions dated 28th June 2018 be hereby upheld.
  • The Respondent be hereby ordered to pay Kshs.5, 298, 608.44 being VAT arrears owed to the Appellant.

Authorities cited

Legislation (3)
  • Tax Appeals Tribunal Act, 2013
  • Value Added Tax Act, 2013
  • Evidence Act
Cases cited (1)
  • Vijay Morjaria vs Nansingh Madhusingh Darbar & Another [2000] eKLR
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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