Eldoret Grains Limited v Commissioner of Domestic Taxes (Tax Appeal 87 of 2017) [2019] KETAT 3 (KLR) (18 December 2019) (Judgment)
- Court
- Tax Appeals Tribunal
- Case number
- 3
- Citation
- [2019] KETAT 3 (KLR)
- Decided
- 18 December 2019
AI Summary
Beta
Machine-generated — may contain errors. Not legal advice.
TypeTax AppealPostureAppeal from a previous decision by the Income Tax Local CommitteeCoramthe Tribunal
Holding
The Tribunal found that the Respondent could not demand tax on deposits found in an account held by a third party, and the appeal is merited and succeeds.
Facts
Eldoret Grains Limited was assessed additional tax of Ksh 567,920,538 for the period 2005 to 2010. The company appealed, and the High Court granted leave to file Judicial Review proceedings.
Issues
- Whether the Respondent could demand tax on deposits found in an account held by a third party
Reasoning
The Tribunal considered the evidence and found that the Respondent did not have a basis for taxing the Appellant on the basis of bankings held in an account of a third party. The owner of the account is the one who can prove whether the funds deposited are taxable income.
Outcome
The appeal is merited and succeeds.
Orders
- Each party shall bear its costs.
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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