Mjengo & General Hardware Ltd v Commissioner of Domestic Taxes (Tax Appeal 1136 of 2022) [2023] KETAT 863 (KLR) (24 November 2023) (Judgment)
- Court
- Tax Appeals Tribunal
- Case number
- 863
- Citation
- [2023] KETAT 863 (KLR)
- Decided
- 24 November 2023
The Tribunal finds and holds that the Appeal partially succeeds, varying the Respondent's Objection Decision on the following terms: the assessment on under-declared VAT sales, overstatement of purchases, and double claims in input tax are upheld; the assessment on overclaimed salaries and wages expenses is set aside.
Facts
The Appellant, Mjengo & General Hardware Ltd, was assessed Kshs. 10,954,728.00 for Corporation tax and Kshs. 1,865,253.00 for VAT. The Respondent, Commissioner of Domestic Taxes, issued an Objection Decision dated 9th September 2022 partially accepting the Appellant's objection. The Appellant appealed the decision.
Issues
- Whether the Respondent's Objection Decision dated 9th September 2022 is incorrect
Reasoning
The Tribunal found that the Appellant failed to provide necessary documents and information to validate its objection, thus the Respondent was justified in confirming the assessment on disallowed purchase invoices. The Tribunal also noted that the Appellant discharged its burden of proof for the salaries and wages expense by providing the muster roll detailing the name, daily attendance, gross pay, and signatory of the recipient.
Outcome
The Appeal is partially successful.
Orders
- The Respondent’s Objection decision is varied on the following terms: the assessment on under-declared VAT sales, overstatement of purchases, and double claims in input tax are upheld; the assessment on overclaimed salaries and wages expenses is set aside; each party bears its own costs.
Authorities cited
Legislation (1)
- Tax Procedures Act
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