VAT on Sale of commercial property- David Mwangi Ndegwa
The taxpayer bought land in Kiambu on which some commercial buildings stood. VAT of Ksh.11,200,008.00 was charged which the buyer was quite reluctant to pay, nevertheless he paid on insistence by the seller hoping to get a refund. The bone of contention in the case was how the land was viewed. The charge was based on the fact that …
VAT on internationally traded services- PANALPINA AIRFLO LIMITED VS KRA-2018
PanalPina a logistics company was contracted by its clients in the Netherlands for purposes of exporting flowers from Kenya. As any other exporter the company filed claims for Value Added Tax refunds for the months of January 2016 and …
Tax assessment through bank statement test analysis- Digital box Ltd Vs KRA
Digital box limited an electronics dealer based in Luthuli avenue Nairobi Filed income tax and VAT returns which the revenue authority considered to be under declared by over Sh. 700 Million. The company raised an objection to the commi …
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 …
Ambiguity in Law CFC Stanbic VS KRA
There was a lacuna in tax law concerning computer software before 2010 when section 31B of the Second schedule was enacted. This section allows capital deduction on computer software at 20%. The petitioner CFC Stanbic had been claiming …
Change of accounting date Iron art Ltd Vs KRA
The SACCO contented that income derived from FOSA services was mutual income generated from its own members and therefore exempted from tax under Section 19A (4). The tax payer had treated this amount as exempt but was latter r subjected….
Income of a SACCO from FOSA – Muramati SACCO (Unaitas) VS KRA
The SACCO contented that income derived from FOSA services was mutual income generated from its own members and therefore exempted from tax under Section 19A (4). The tax payer had treated this amount as exempt but was latter r subjected….
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 fees to the Chinese company, which they delayed and account …
Taxing Income from illegal activities – Mann vs Nash
The Appellant, who carried on the business of providing automatic machines for public use, dealt in and entered into arrangements for exploiting, certain automatic machines the use of which has been held to be illegal. The machines were …
Tax laws as an adjunct to criminal law – Case of Al Capone
One of the famous crime masterminds, Al Capone dodged all other laws for crimes he had committed only to be humbled by tax law. In the 1920’s Al Capone virtually controlled all the gambling, prostitution, liquor and extortion rackets in …