Community Health Promotion Kenya Limited v Commissioner of Domestic Taxes (Tax Appeal E367 of 2025) [2026] KETAT 19 (KLR) (9 February 2026) (Judgment)
- Court
- Tax Appeals Tribunal
- Case number
- 19
- Citation
- [2026] KETAT 19 (KLR)
- Decided
- 9 February 2026
The Tribunal finds that the Appellant's rental income from commercial premises is taxable as commercial rental income, and the Respondent's assessments are correct.
Facts
The Appellant, Community Health Promotion Kenya Limited, was assessed additional tax by the Respondent, the Commissioner of Domestic Taxes, for the years 2021 to 2023. The Appellant filed a Notice of Objection contesting the assessments, and the Respondent issued an Objection Decision confirming a revised assessment.
Issues
- Whether the rental income earned by the Appellant was taxable as commercial rental income
- Whether the Respondent lawfully disallowed the Appellant's claimed expenses and made PAYE adjustments
- Whether the Appellant proved that the Respondent's tax assessments were incorrect
Reasoning
The Tribunal determined that the Appellant's rental income from office space is commercial income and subject to Corporation Tax. The Tribunal upheld the Respondent's assessments and found that the Appellant did not provide sufficient evidence for allowable expenses and that discrepancies in staff costs justified PAYE adjustments.
Outcome
The Appeal is dismissed, and the objection decision is upheld.
Orders
- The Appeal be and is hereby dismissed.
- The objection decision of the Respondent dated 21st February, 2025 be and is hereby upheld.
- Each party to bear its own costs.
Authorities cited
Legislation (3)
- VATA
- TPA
- TATA
Cases cited (5)
- Njagi Investment Limited v Commissioner of Domestic Taxes (TAT No. 203 of 2019)
- Digital Box Limited v Commissioner of Investigations & Enforcement (TAT Appeal No. 115 of 2017)
- David Ndii Mwangi v Commissioner of Investigations & Enforcement (TAT No. 35 of 2018)
- Man Diesel & Turbo SE v Commissioner of Domestic Taxes (TAT No. 9 of 2016)
- KRA v George O. Ochieng (TAT No. 62 of 2019)
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