Angelique International Limited v Commissioner of Domestic Taxes (Tax Appeal 587 of 2020) [2021] KETAT 2 (KLR) (3 December 2021) (Judgment)
- Court
- Tax Appeals Tribunal
- Case number
- 2
- Citation
- [2021] KETAT 2 (KLR)
- Decided
- 3 December 2021
AI Summary
Beta
Machine-generated — may contain errors. Not legal advice.
TypeTax AppealPostureAppeal from a decision of the Commissioner of Domestic Taxes
Holding
The Tribunal held that the provisions of the ITA can override the provisions of the Kenya-India DTA, and the Respondent cannot deem the entire income as taxable in Kenya.
Facts
The Appellant, Angelique International Limited, is a branch of a company incorporated in India. It entered into three contracts with Kenya Power & Lighting Company (KPLC) for turnkey projects in various sectors. The Respondent, Commissioner of Domestic Taxes, disallowed input VAT credits claimed by the Appellant.
Issues
- Whether the entire income accrued by Angelique India is taxable in Kenya
- Whether the Respondent can deem the entire income as taxable in Kenya even when not attributable to the Appellant and taxed in India
- Whether the contract between Angelique India and KPLC can be deemed a 'single' or 'turnkey' contract
Reasoning
The Tribunal found that the Kenya-India DTA applies to taxes on income imposed on behalf of a Contracting State or its political subdivisions, and the Appellant's income was derived from Kenya and thus taxable in Kenya.
Outcome
Affirmed
Authorities cited
Legislation (2)
- Income Tax Act
- Kenya-India Double Taxation Avoidance Agreement
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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