Telkom Kenya Limited v Commissioner of Domestic Taxes (Tax Appeal 226 of 2022) [2023] KETAT 970 (KLR) (Commercial and Tax) (6 October 2023) (Judgment)
- Court
- Tax Appeals Tribunal
- Case number
- 970
- Citation
- [2023] KETAT 970 (KLR)
- Decided
- 6 October 2023
AI Summary
Beta
Machine-generated — may contain errors. Not legal advice.
TypeTax AppealPostureAppeal from a tax assessmentCoramIL, Odunga
Holding
The Tribunal found that the Commissioner erred in assessing VAT, Excise Duty, and CIT based on industry ARPU estimates, and in assessing VAT on certain income streams.
Facts
Telkom Kenya Limited was audited by the Commissioner of Domestic Taxes for the period 2015-2019. The Commissioner assessed VAT, Excise Duty, and Corporate Income Tax based on industry Average Revenue Per User (ARPU) estimates, while Telkom argued for actual income data.
Issues
- Whether the Commissioner erred in assessing VAT, Excise Duty, and CIT based on industry ARPU estimates
- Whether the Commissioner erred in law and fact in assessing VAT on certain income streams
- Whether the Commissioner erred in law and fact in assessing Excise Duty on deferred income and VAT on incremental Excise Duty
- Whether the Commissioner erred in law and fact by disallowing adjusted income as specified source income and demanding withholding tax on collocation income
Reasoning
The Tribunal determined that the Commissioner's use of industry ARPU estimates was incorrect, and that the Appellant should have been assessed based on its actual income data.
Outcome
Affirmed the Commissioner's assessment
Authorities cited
Legislation (2)
- Tax Procedures Act
- Income Tax 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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