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 …
Transfer pricing- Unilever Kenya Ltd Vs KRA
Unilever Kenya was selling goods to Unilever Uganda and KRA held that the transactions were not at arm’s length being less than the price at which goods were sold to local customers. These goods had been marked up by only 5% between the….
Disallowable Business expenditure (duality test) – Caillebotte v Quinn [1975]
Quinn was a sub-contract carpenter, working on sites within a 40-mile radius of his home. When working, Quinn could not go home for lunch and bought one at an average cost of 40 pence, compared with an estimated cost of 10 pence for a …..
Expenditure having an intrinsic duality of purpose – Mallalieu v Drummond [1983]
The barrister, in accordance with Bar requirements, acquired and wore particular items of clothing, both in court and to and from the court to her chambers. The clothing was such as might be used for ordinary civilian purposes but she …
Taxing income from undisclosed sources – Pili management consultants
The court of Appeal noted as follows; “Pili, as we have seen, made a nil return of income for the year 2004. It alleged it was not trading for that year and that therefore, could not have earned any income upon which tax could have been …
Kra power to search premises and sieze goods, documents and storage devices
Tax procedures act Sec 51(11) provides that the commissioner should respond to a taxpayers objection within 60 days, failure to which the taxpayers objection stand as allowed. In the above case Sanofi Aventis lodged an objection on 6th….
Delayed Objection decision KRA Vs Sanofi Aventis
Tax procedures act Sec 51(11) provides that the commissioner should respond to a taxpayers objection within 60 days, failure to which the taxpayers objection stand as allowed. In the above case Sanofi Aventis lodged an objection on 6th….
School fees benefit to employees – Brookhouse Vs KRA
The bone of contention in this matter was treatment of education benefit enjoyed by employees of brookhouse group of schools. The law provides for two ways of bringing the benefit to tax, that is taxing it on the employee (through PAYE ….
Withdrawal of Private Rulings MKOPA Vs KRA
KRA issued a private ruling to MKOPA according to section 65(1) of the tax procedures act 2015, exempting imported television sets from VAT. KRA subsequently withdrew the exemption and assessed tax. It was held that the private ruling …..
VAT Reverse charge Barclays bank (Now ABSA) Vs KRA
BBK gets services from VISA mastercard who charge them interchange fees claiming they are exempt as fin services KRA claimed this is an imported service as it was a royalty VAT on imported services the tax Demand was KES 761M. The tax ….