Oracle Systems Limited (Kenya Branch) v Commissioner of Domestic Taxes (Appeal 148 of 2019) [2021] KETAT 86 (KLR) (16 April 2021) (Judgment)
- Court
- Tax Appeals Tribunal
- Case number
- 86
- Citation
- [2021] KETAT 86 (KLR)
- Decided
- 16 April 2021
The Tribunal held that the dealings between the Appellant and Oracle Systems Limited do not constitute a supply of services for VAT purposes, and therefore, the Respondent did not wrongly demand VAT on services used and consumed outside Kenya.
Facts
Oracle Systems Limited (Kenya Branch) objected to a notice of assessment issued by the Commissioner of Domestic Taxes for Corporation Tax, PAYE taxes, and Value Added Tax (VAT) for the period 2013 to 2014. The Respondent issued a Notice of Objection Decision reducing the amount demanded to Kshs. 1,683,093,024.00. Oracle Systems Limited (Kenya Branch) then appealed this decision.
Issues
- Whether the Respondent wrongly treated the dealings between the Appellant and Oracle Systems Limited as constituting a supply of services for VAT purposes.
- Whether the Respondent wrongly demanded VAT on services used and consumed outside Kenya.
Reasoning
The Tribunal interpreted the VAT Act to determine that a taxable supply must be made by a registered person in Kenya. The Tribunal ruled that the dealings between the Appellant and Oracle Systems Limited do not meet the criteria for a taxable supply as defined in the VAT Act.
Outcome
The appeal was dismissed.
Authorities cited
Legislation (2)
- VAT Act
- Income Tax Act
Cases cited (5)
- Republic v Kenya Revenue Authority & another Ex-parte Fontana Limited
- Republic V Commissioner of Domestic Taxes Large Taxpayer's Office Ex-Parte Barclays Bank of Kenya Ltd
- Tanganyika Mine Workers Union vs. The Registrar of Trade Unions
- Cape Brandy Syndicate v Inland Revenue Commissioners
- T.M. Bell v Commissioner of Income
Loading judgment…