Kenya Tourism Board v Commissioner of Domestic Taxes (Tax Appeal 180 of 2017) [2019] KETAT 6 (KLR) (18 December 2019) (Judgment)
- Court
- Tax Appeals Tribunal
- Case number
- 6
- Citation
- [2019] KETAT 6 (KLR)
- Decided
- 18 December 2019
AI Summary
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Machine-generated — may contain errors. Not legal advice.
TypeTax AppealPostureAppeal from a decision to assess withholding taxCoramJosephine K. Maanq1, Tanvir Ali Geoffrey Karuu, Richard Rotich Delila, Richard Rotich Delila
Holding
The tribunal finds that the payments to MDRs should be subject to Withholding Tax and dismisses the appeal.
Facts
The Kenya Tourism Board (KTB) was audited by the Commissioner of Domestic Taxes (CDT) for VAT, PAYE, and Withholding Tax (WHT) for the period July 2012 to August 2016. KTB filed a notice of objection and later appealed the WHT assessment.
Issues
- Whether payments made by KTB to Marketing Development Representatives (MDR) should be subjected to Withholding Tax
Reasoning
The tribunal determined that the payments to MDRs are not income of the KTB but income from the agents and consultants, qualifying for WHT under ITA.
Outcome
Appeal dismissed
Orders
- Respondent's demand for WHT of Kshs. 182,456,743 is upheld
- Each party bears its costs
Authorities cited
Legislation (2)
- Income Tax Act (ITA)
- State Corporations Act (CAP 446)
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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