Better Globe Forestry Limited v Commissioner of Domestic Taxes (Tax Appeal 135 of 2021) [2021] KETAT 7 (KLR) (12 November 2021) (Judgment)
- Court
- Tax Appeals Tribunal
- Case number
- 7
- Citation
- [2021] KETAT 7 (KLR)
- Decided
- 12 November 2021
AI Summary
Beta
Machine-generated — may contain errors. Not legal advice.
TypeTax AppealPostureAppeal from a Notice of Assessment
Holding
The Appellant's activities are not considered a loan but a management fee agreement, and the Respondent's assessment is upheld.
Facts
The Appellant, Better Globe Forestry Limited, is a forest development agency company that develops and manages trees on behalf of a Norwegian company, Better Globe AS, through crowdfunding from overseas customers. The Respondent, Commissioner of Domestic Taxes, assessed additional withholding tax on the Appellant for the years 2015-2018.
Issues
- Whether the Respondent erred in law by raising the additional withholding tax assessment on an approach that contravenes the applicable Sections of the Income Tax Act, international instructions, best practices, and Kenyan jurisprudence.
- Whether the Appellant's activities constitute a loan or a management fee agreement.
Reasoning
The Tribunal found that the Appellant's activities are a management fee agreement and not a loan, thus the Respondent's assessment is correct.
Outcome
Appeal dismissed
Authorities cited
Legislation (2)
- Income Tax Act
- Tax Procedures Act
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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