Pevans East Africa Limited v Commissioner of Domestic Taxes (Appeal 336 of 2018) [2019] KETAT 14 (KLR) (18 December 2019) (Judgment)
- Court
- Tax Appeals Tribunal
- Case number
- 14
- Citation
- [2019] KETAT 14 (KLR)
- Decided
- 18 December 2019
AI Summary
Beta
Machine-generated — may contain errors. Not legal advice.
TypeTax AppealPostureAppeal from a decision of the Commissioner of Domestic TaxesCoramNkabinde
Holding
The court order is binding on the Respondent, and the demand for WHT on winnings is vacated as it would place the Appellant in contempt of the court order.
Facts
Pevans East Africa Limited was audited and required to withhold Withholding Tax (WHT) on winnings from betting. The company was restrained by a court order from withholding tax on winnings, and the Commissioner demanded WHT on winnings amounting to KES 9,024,381,818.
Issues
- Whether the court order restraining the Appellant from withholding tax on winnings is binding on the Respondent
- Whether withholding tax on winnings is an agency tax and the obligation to collect WHT is on the payer (Appellant)
Reasoning
The court held that the court order is binding and that withholding tax on winnings is not an agency tax, thus the demand for WHT is vacated.
Outcome
Appeal dismissed
Orders
- WHT on winnings amounting to KES 9,024,381,818 is vacated
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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