Techsavana Company Limited v Commissioner of Domestic Taxes (Appeal 655 of 2021) [2023] KETAT 331 (KLR) (2 June 2023) (Judgment)
- Court
- Tax Appeals Tribunal
- Case number
- 331
- Citation
- [2023] KETAT 331 (KLR)
- Decided
- 2 June 2023
AI Summary
Beta
Machine-generated — may contain errors. Not legal advice.
TypeTax AppealPostureAppeal from a decision of the Commissioner of Domestic TaxesCoramRoland
Holding
The Tribunal held that the payments made by the Appellant to its outsourced developers were disbursements and not services subject to VAT.
Facts
Techsavana Company Limited was assessed VAT and withholding tax by the Commissioner of Domestic Taxes. The Appellant appealed the VAT assessment, and the Tribunal allowed the Appellant to amend its Memorandum of Appeal.
Issues
- Whether the Respondent erred in its assessment of VAT on the Appellant
Reasoning
The Tribunal determined that the outsourced developers were under the direct supervision of Safaricom, and the Appellant was merely facilitating the payments. Therefore, the amounts paid to the developers were disbursements and not services subject to VAT.
Outcome
Affirmed the objection decision of the Respondent and upheld the assessment of VAT.
Authorities cited
Legislation (1)
- VAT 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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