Mugala Engineering & Construction Limited v Commissioner of Domestic Taxes (Tribunal Appeal 803 of 2021) [2023] KETAT 104 (KLR) (17 March 2023) (Judgment)
- Court
- Tax Appeals Tribunal
- Case number
- 104
- Citation
- [2023] KETAT 104 (KLR)
- Decided
- 17 March 2023
AI Summary
Beta
Machine-generated — may contain errors. Not legal advice.
TypeTax AppealPostureAppeal from a decision rejecting an objection to an assessmentCoramRM MUTUMA, EN NJERU, RO OLUOCH, D.K NGALA, EK CHELUGET
Holding
The Tribunal found that the Appellant did not earn income from the contract and therefore could not be charged tax on it.
Facts
The Appellant was found non-compliant in filing returns for April 2017 and supplies to the County Government of Tharaka Nithi. The Respondent issued an additional assessment for Income tax and VAT totaling Ksh 77,280,966.07.
Issues
- Whether the Respondent justly levied taxes on the Appellant based on a contract for Ksh 105,030,000 awarded by Tharaka Nithi County Government.
- Whether the Objection Decision dated 8th November 2020 and the assessment of Ksh 77,280,966.07 are proper and justifiable.
Reasoning
The Tribunal held that the Appellant had discharged the burden of proof by proving that the contract was not awarded to it and thus could not be charged tax on income it did not earn.
Outcome
Affirmed the Respondent's assessment and Objection Decision.
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.
Loading judgment…