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Interactive Gaming & Lotteries Limited v Commissioner of Domestic Taxes (Appeal 121 of 2016) [2021] KETAT 26 (KLR) (16 April 2021) (Judgment)

[2021] KETAT 26 (KLR) Tax Appeals Tribunal
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Court
Tax Appeals Tribunal
Case number
26
Citation
[2021] KETAT 26 (KLR)
Decided
16 April 2021
AI Summary Beta Machine-generated — may contain errors. Not legal advice.
TypeTax AppealPostureAppeal from a High Court JudgmentCoramHELEN BILA MWAIMBUTHIA, ELISHAH NJERU HABON FARAH
Holding

The Respondent’s Corporation Tax, Withholding Tax and VAT assessments be and are hereby set aside. The Respondent do proceed to review the Appellant’s records and issue appropriate tax assessments. Each party shall bear its costs.

Facts

Interactive Gaming & Lotteries Limited was licensed to operate a public lottery system in partnership with Flint East Africa Limited. The Commissioner of Domestic Taxes issued an Estimated Assessment Notice totaling KShs 363,043,057.00, including VAT, withholding tax, and corporation tax.

Issues

  1. Whether the issue of taxes demanded from the Appellant by the Respondent had been determined by the High Court in Civil Case Number 115 of 2011 and the matter was therefore Res Judicata.
  2. Whether the Appellant is liable to pay the assessed Corporation Tax of KShs. 26,135,295.
  3. Whether the Appellant is liable to pay withholding tax of KShs 975,709.00.
  4. Whether the Appellant is liable to pay VAT of KShs 15,980,197.00.

Reasoning

The High Court in HCCC 115 of 2011 held that the claim for payment of taxes was against Flint and not against the Appellant. The Tribunal agreed and set aside the Respondent's assessments.

Outcome

Appeal dismissed

Orders

  • The Respondent’s Corporation Tax, Withholding Tax and VAT assessments be and are hereby set aside.
  • The Respondent do proceed to review the Appellant’s records and issue appropriate tax assessments.
  • Each party shall bear its costs.

Remedies

  • Set aside the Respondent's Corporation Tax, Withholding Tax and VAT assessments.
  • Proceed to review the Appellant’s records and issue appropriate tax assessments.
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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