Cleanshelf Supermarkets Limited v Commissioner of Domestic TAxes (Appeal 194 of 2018) [2021] KETAT 19 (KLR) (18 June 2021) (Judgment)
- Court
- Tax Appeals Tribunal
- Case number
- 19
- Citation
- [2021] KETAT 19 (KLR)
- Decided
- 18 June 2021
AI Summary
Beta
Machine-generated — may contain errors. Not legal advice.
TypeTax AppealPostureAppeal from a tax assessmentCoramPATRICK LUTTA, HELEN BJLA MWAI MBUTHIA, ELISHAH NJERU HABON FARAH
Holding
The Appeal is merited, and the Tribunal allows the Appeal, vacating the Objection Decision and the resultant assessment.
Facts
The Respondent conducted investigations into the affairs of various companies and found that the Appellant's suppliers were involved in a fraudulent tax evasion scheme. The Respondent issued a tax demand for VAT and Corporation Tax from the Appellant for the period 2014 to 2015.
Issues
- Whether the Respondent erred in law and fact by claiming that there were no purchases made by the Appellant from Zulma Trading Company Limited for the period 2014 to 2015 totalling Kshs. 36,920,404.23
- Whether the Tribunal should allow the Appeal and vacate the Objection Decision
Reasoning
The Tribunal found that the Respondent erred in law and fact by claiming that there were no purchases made by the Appellant from Zulma Trading Company Limited for the period 2014 to 2015, totaling Kshs. 36,920,404.23.
Outcome
The Appeal is allowed.
Orders
- The Objection Decision dated 11th July 2018 confirming the assessment of Kshs. 5,907,264.68 for Value Added Tax (VAT) together with the resultant interest and penalties be vacated.
- Each Party to 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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