Monaco Engineering Limited v Commissioner of Income Taxes [2021] KEHC 9698 (KLR)
- Court
- High Court of Kenya
- Case number
- 9698
- Citation
- [2021] KEHC 9698 (KLR)
- Decided
- 20 January 2021
The Court grants the stay of execution of the Tax Appeals Tribunal's decision with security of Kshs. 20,000,000.
Facts
The applicant, Monaco Engineering Limited, was audited for the years 2013 to 2015 and found to have under-declared taxes, leading to a tax liability of Kshs. 65,281,768. The respondent, Commissioner of Income Taxes, issued an Agency Notice for this amount. The applicant sought a stay of execution of the Tax Appeals Tribunal's decision pending appeal.
Issues
- Whether the applicant's appeal is meritorious.
- Whether the applicant will suffer substantial loss if the Agency Notice is enforced.
- Whether the applicant should be required to provide security for the taxes due to the government.
Reasoning
The Court found that the applicant's appeal is meritorious and that it may suffer substantial loss if the Agency Notice is enforced due to the uncertain business environment and the applicant's financial difficulties. The Court ordered the applicant to provide security of Kshs. 20,000,000.
Outcome
The application for stay pending appeal is granted with security.
Orders
- Stay of execution of the Tax Appeals Tribunal's decision pending appeal.
- Order for security of Kshs. 20,000,000.
Remedies
- Stay of execution of the Tax Appeals Tribunal's decision pending appeal.
- Order for security of Kshs. 20,000,000.
Authorities cited
Legislation (1)
- Tax Appeals Tribunal Act, No. 40 of 2013
Cases cited (4)
- Keroche Breweries Limited vs. Commissioner of Domestic Taxes HC Comm ITA No. E021 of 2020 (UR)
- Bella Vista Restaurant Mombasa Limited vs. Kenya Revenue Authority [2016] eKLR
- Awal Limited vs. Commissioner of Investigations and Enforcement [2020] eKLR
- Victrociset S.P.A. Kenya vs. Commissioner of Domestic Taxes [2018] eKLR
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