Isolux Ingenieria S.A v Commissioner of Domestic Taxes (Tax Appeal 133 of 2017) [2020] KETAT 92 (KLR) (16 October 2020) (Judgment)
- Court
- Tax Appeals Tribunal
- Case number
- 92
- Citation
- [2020] KETAT 92 (KLR)
- Decided
- 16 October 2020
AI Summary
Beta
Machine-generated — may contain errors. Not legal advice.
TypeTax AppealPostureAppeal from a Notice of Additional Assessments
Holding
The Tribunal dismissed the appeal and directed the Appellant to pay the outstanding taxes.
Facts
Isolux Ingenieria S.A. is a Kenyan branch of a Spanish company involved in construction of electricity transmission and distribution lines. The Respondent, Commissioner of Domestic Taxes, issued additional corporate income tax and PAYE assessments for the years 2015 and 2016.
Issues
- Whether the Respondent erred in law and fact by issuing an additional corporate income tax assessment in respect of the 2015 and 2016 years of income?
- Whether the Respondent erred in law and fact by issuing an additional PAYE tax assessment in respect of 2015 and 2016?
Reasoning
The Tribunal determined that the EPC contract was indivisible for tax purposes and that the Appellant's profits should be taxed based on the arm's length principle. The Appellant was directed to pay the outstanding taxes.
Outcome
Appeal dismissed
Orders
- The Appellant is directed to pay the outstanding taxes
Authorities cited
Legislation (2)
- Income Tax Act
- Income Tax (Transfer Pricing) Rules, 2006
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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