Cable Car Corporation v Commissioner of Domestic Taxes (Tax Appeal 1433 of 2022) [2024] KETAT 43 (KLR) (26 January 2024) (Judgment)
- Court
- Tax Appeals Tribunal
- Case number
- 43
- Citation
- [2024] KETAT 43 (KLR)
- Decided
- 26 January 2024
The Tribunal found that the Respondent did not comply with the mandatory 60-day timeline for issuing an objection decision due to the lack of supporting documents from the Appellant.
Facts
The Appellant, Cable Car Corporation, objected to tax assessments issued by the Respondent, Commissioner of Domestic Taxes, on grounds of lack of supporting documents. The Respondent rejected the objection and demanded taxes. The Appellant then appealed the decision.
Issues
- Whether the Appellant's notice of objection was allowed by operations of the law.
- Whether the Respondent erred in its assessment of tax on the Appellant.
Reasoning
The Tribunal ruled that the Respondent should have issued an objection decision within 60 days from the date of receipt of the notice of objection, but failed to do so due to the Appellant's lack of supporting documents.
Outcome
The Tribunal allowed the Appellant's appeal and found the Respondent's decision invalid.
Orders
- The Respondent's decision rejecting the Appellant's objection is set aside.
- The Respondent is ordered to issue an objection decision within the mandatory 60-day timeline.
Remedies
- The Respondent is ordered to issue an objection decision within the mandatory 60-day timeline.
Authorities cited
Legislation (2)
- Tax Procedures Act
- Companies Act
Cases cited (1)
- Nicholas Kiptoo Arap Korir Salat v IEBC & 6 Others
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