Application of refund against future tax liabilities – Commissioner domestic Taxes Vs Unga Ltd (2020)
Unga Ltd launched an appeal claim for VAT in the years 2012 and 2013. The commissioner audited the refund claim and informed Unga that its VAT refund claims totaled Kshs. 189,958,332.00, “are all processed and in the Finance Department…
Fraudulent Input Tax Claim- Commissioner of Domestic taxes V Metoxide Limited
In ruling over the matter, the high court highlighted the provision of Section 17(1) of the VAT act which indicates input tax is claimable but to the extent that the supply or importation was made to make taxable supplies. The basis …
Late claim of Input tax- Hi Highlands Mineral Water Limited V Commissioner of Domestic Taxes (2021)
The commissioner conducted a compliance check on the appellant and issued a letter dated 16th November 2017 indicating that VAT returns were filed late. The commissioner went on to disallow Input tax claims for January 2014 to April …
Missing trader fraud – Commissioner of Domestic Taxes (Appellant) V Galaxy Tools Limited (2021)
On 18th July 2018, the commissioner issued an objection decision confirming an assessment amounting to Kshs.1,698,702.00 for VAT and Kshs.3,210,651.00 for Corporation Tax against the respondent, Galaxy Tools Limited….
Loss of tax records- Commissioner of Domestic Taxes Vs Altech Stream (EA) Limited [2021]
The commissioner audited the respondent for the period 2011 to 2015 and raised an assessment of Kshs.190,833,899/- as tax liability for Corporation Tax, Vat and Withholding Tax. This was objected but the commissioner rejected the objection…
Employment Benefit Conveyed To Director- Securex Agencies Kenya Vs KRA
A director of the above-named company lived in a building owned by the company. KRA raised a tax demand for Shs 18,480,485 as income tax arrears falling under Pay as you earn. The contention was whether a director is an employee of a …
Withholding Tax on Credit & Debit Cards – KRA Vs Barclays Bank
Barclays bank used credit and debit cards from credit card companies namely VISA, Master card and American express. KRA demanded withholding tax on the amounts payable by the bank to credit card companies and on management fees for the service charges to…
Withholding tax on accrued expense – KRA vs Fintel limited
Fintel ltd engaged China Jiangsu International Economic Technical Co-operation for the construction of a rental building on April 21, 2009. Fintel was then to pay a contractual fee to the Chinese company, which they delayed and accounted for as a liability in their financial..
Taxation of Churches in Kenya
The income of churches is exempt from tax in Kenya. Paragraph 10 of the first schedule of the income tax Act CAP 470 laws of Kenya exempts institutions established for the advancement of religion. Some churches run business ventures like hotels, transport, Radio station….
Taxation of Retirement Benefits in Kenya (Pension Benefits)
Taxation of retirement benefits in Kenya explained, including pension contributions, exemptions, gratuity rules, and new tax reliefs under Finance Act 2025…..