Pevans East Africa Limited v Commissioner of Domestic Taxes; Shop and Deliver Limited & 6 others (Interested Parties) (Tax Appeal 304, 141, 175, 198, 200, 265, 302 & 305 of 2019 (Consolidated)) [2019] KETAT 19 (KLR) (6 November 2019) (Judgment)

Facts

Pevans East Africa Limited was demanded Ksh 2,570,692,379 in withholding tax on winnings for May 2019 by the Commissioner of Domestic Taxes. The company objected to the demand and disputed the computation of the taxes.

Issues

1. Whether the Appellant has Locus Standi in filing the Appeal in respect of deductions of Withholding tax on winnings.
2. Whether the doctrine of Res Judicata is applicable herein.
3. What constitutes winnings under the Income Tax Act.
4. Whether the Respondent erred in issuing demands for withholding tax against the Appellant.
5. Whether the additional evidence tendered by the Respondent in its submissions during the proceedings is unprocedural and ought to be expunged from the record.

Reasoning

The Tribunal found that the Appellant had sufficient connection to the Respondent's demand to support its participation in the case. The Respondent's submission that only the punter is entitled to object to the application of the 20% rate of WHT to the pay-outs as opposed to the winnings was not supported.

Outcome

The Appeal is merited and succeeds.

Authorities cited