Afzal Industry Supply Limited v Commissioner of Domestic Taxes (Appeal 460 of 2019) [2021] KETAT 22 (KLR) (23 July 2021) (Judgment)
- Court
- Tax Appeals Tribunal
- Case number
- 22
- Citation
- [2021] KETAT 22 (KLR)
- Decided
- 23 July 2021
The Tribunal finds that the Respondent did not err by issuing a default assessment, as the Appellant failed to submit its income tax self-assessment returns for the years 2016 and 2017.
Facts
The Appellant, Afzal Industry Supply Limited, was assessed for tax amounts of Kshs 61,122,163.00 for 2016 and Kshs 17,961,726.00 for 2017. The Appellant appealed the assessment, arguing due process was not followed and that the assessment was based on incorrect information.
Issues
- Whether the Respondent erred by demanding taxes of Kshs 79,083,889.00
Reasoning
The Tribunal ruled that the Respondent had the authority to issue a default assessment under Section 29 of the Taxpayer Protection Act (TPA) due to the Appellant's failure to submit tax returns. The Tribunal also noted that the Appellant had filed VAT returns but not income tax returns, which were the basis for the assessment.
Outcome
Affirmed
Authorities cited
Legislation (1)
- Value Added Tax Act, 2013
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