Kenyan case law

Mwangi v Commissioner of Domestic Taxes (Miscellaneous Application 31 of 2019) [2020] KETAT 81 (KLR) (27 February 2020) (Ruling)

Equity Group Holdings Limited v Commissioner of Domestic Taxes (Appeal 27 of 2017) [2020] KETAT 63 (KLR) (26 February 2020) (Judgment)

Pevans East Africa Limited v Commissioner of Domestic Taxes (Appeal 336 of 2018) [2019] KETAT 14 (KLR) (18 December 2019) (Judgment)

✦ The court order is binding on the Respondent, and the demand for WHT on winnings is vacated as it would place the Appellant in contempt of the court order.

Lodwar Wholesalers Ltd v Commissioner of Investigations & Enforcement (Tax Appeal 191 of 2017) [2019] KETAT 9 (KLR) (18 December 2019) (Judgment)

✦ The Tribunal finds that the Respondent did not err by charging corporation tax on unsupported purchases and bank transfers. The Appellant failed to provide evidence of actual purchases of non-vatable medical supplies.

Equity Bank (Kenya) Limited v Commissioner of Domestic Taxes (Appeal 161 of 2017) [2019] KETAT 16 (KLR) (18 December 2019) (Judgment)

Lifecare Insurance Brokers Limited v Commissioner of Domestic Taxes (Tax Appeal 60 of 2017) [2019] KETAT 22 (KLR) (18 December 2019) (Judgment)

✦ The Tribunal finds that the Respondent's Objection Decision was not made within the statutory 60-day period and thus the Appellant's Objection is allowed.

Jasmin Construction Limited v Commissioner of Domestic Taxes (Appeal 193 of 2017) [2019] KETAT 23 (KLR) (18 December 2019) (Judgment)

✦ The Tribunal upheld the additional VAT assessments for 2014, 2015, and 2016, but found the additional corporate income tax assessment for 2015 unjustified.

Kinisu v Commissioner of Investigations & Enforcement (Tax Appeal 170 of 2017) [2019] KETAT 12 (KLR) (18 December 2019) (Judgment)

✦ The Tribunal finds the objection decision valid and amends the assessment to exclude income prior to 2011. It also finds that the income from partner savings and bank deposits are not taxable.

Nailab Limited v Commissioner of Domestic Taxes (Appeal 167 of 2017) [2019] KETAT 13 (KLR) (18 December 2019) (Judgment)

✦ The Respondent's Objection Decision dated 13th October 2017 is valid.

Applewood Investments Limited v Commissioner of Domestic Tax (Appeal 147 of 2017) [2019] KETAT 17 (KLR) (18 December 2019) (Judgment)

✦ The Tribunal found that the Respondent did not err in disallowing the input VAT, as the Appellant claimed the VAT input on invoices that were three and one month out of time respectively, and there is no provision in law that allows the extension of time to claim input VAT.

Chester Insurance Brokers Limited v Commissioner of Domestic Taxes (Appeal 135 of 2016) [2019] KETAT 4 (KLR) (18 December 2019) (Judgment)

✦ The Tribunal finds that insurance commissions are subject to excise duty and that withholding tax is applicable to professional service fees.

Njiru v Commissioner of Investigations & Enforcement (Tax Appeal 79 of 2017) [2019] KETAT 7 (KLR) (18 December 2019) (Judgment)

✦ The Tribunal found that the Respondent had agreed to treat the bankings in the Appellant's personal bank account with Barclays Bank Limited as the income of Paleah Stores Ltd. The deposits in Equity Bank Ltd were brought into the Appellant's revised chargeable income.

Grain Bulk Handlers Ltd v Commissioner of Investigations & Enforcement (Tax Appeal 22 & 23 of 2018 (Consolidated)) [2019] KETAT 11 (KLR) (18 December 2019) (Judgment)

Eldoret Grains Limited v Commissioner of Domestic Taxes (Tax Appeal 87 of 2017) [2019] KETAT 3 (KLR) (18 December 2019) (Judgment)

✦ The Tribunal found that the Respondent could not demand tax on deposits found in an account held by a third party, and the appeal is merited and succeeds.

Kenya Tourism Board v Commissioner of Domestic Taxes (Tax Appeal 180 of 2017) [2019] KETAT 6 (KLR) (18 December 2019) (Judgment)

✦ The tribunal finds that the payments to MDRs should be subject to Withholding Tax and dismisses the appeal.

Central Kenya Coffee Mill Limited v Commissioner of Domestic Taxes (Appeal 52 of 2016) [2019] KETAT 2 (KLR) (Appeals) (18 December 2019) (Judgment)

✦ The Tribunal found the Respondent's Objection Decision irregular and in contravention of statutory requirements, and dismissed the appeal.

Rose Investments Ltd v Commissioner of Investigation & Enforcement (Tax Appeal 171 of 2017) [2019] KETAT 5 (KLR) (18 December 2019) (Judgment)

✦ The Tribunal found the objection decision valid, allowed interest expense, allowed input VAT on residential building, disallowed internal and related party bank transfers, allowed actual accrual costs, and adjusted the assessment to exclude the years 2010 and 2011.

Local Productions Kenya Limited v Commissioner of Domestic Taxes (Appeal 50 of 2017) [2019] KETAT 18 (KLR) (17 December 2019) (Judgment)

✦ The Tribunal finds that the Respondent failed to provide reasons for rejecting the Appellant's refund claim and did not consider the Appellant's further grounds. The Tribunal concludes that the Respondent's decision fell short of the constitutional parameters on fair administrative action.

Afya X-Ray Centre Limited v Commissioner of Domestic Taxes (Appeal 70 of 2017) [2019] KETAT 25 (KLR) (17 December 2019) (Judgment)

✦ The Respondent’s assessment was justified in law.

Boleyn International Limited v Commissioner, Investigation & Enforcement (Appeal 55 of 2018) [2019] KETAT 24 (KLR) (Appeals) (17 December 2019) (Judgment)

✦ The appeal is dismissed with costs to the Respondent. The Respondent’s assessments are upheld.

China Road and Bridge Corporation v Commissioner of Domestic Taxes (Appeal 162 of 2017) [2019] KETAT 15 (KLR) (17 December 2019) (Judgment)

✦ The Appellant's appeal is dismissed. There is no employer-employee relationship between CRBC and the police officers, and CRBC is not responsible for deducting and remitting PAYE.

Ngurumani Traders Limited v Commissioner of Investigation and Enforcement (Appeal 125 of 2017) [2019] KETAT 21 (KLR) (17 December 2019) (Judgment)

✦ The preliminary objection is not valid as the Appellant failed to submit documents in support of its objection as required by section 51 (3) of the Tax Procedures Act, 2015.

Tumaini Distributors Company Limited v Commissioner of Domestic Taxes (Tax Appeal 141 of 2017) [2019] KETAT 10 (KLR) (17 December 2019) (Judgment)

✦ The Tribunal finds that the Respondent followed the correct procedure in assessing the Appellant's tax liability. The Appellant's claims of non-compliance and submission of conflicting accounts are rejected.

Chelal Limited v Commissioner of Domestic Taxes (Appeal 142 of 2017) [2019] KETAT 1 (KLR) (17 December 2019) (Judgment)

✦ The Tribunal finds that the Respondent did not rely on incomplete records and that the items supplied by the Appellant are not zero rated for VAT purposes.

Laser Supplies Limited v Commissioner Income Taxes Department (Tax Appeal 54 of 2017) [2019] KETAT 8 (KLR) (Appeals) (17 December 2019) (Judgment)

✦ The Appellant cannot claim input VAT after the lapse of six (6) months as per section 17(2) of the VAT Act, 2013.