Burden of Proof – Kenya Revenue Authority Vs Pearl Industries Limited
Pearl industries a company manufacturing and selling fabrics was subjected to an investigation by KRA with a view of establishing the authenticity of documents used to support input tax claim on suspicion of VAT fraud. Consequently the ….
TAX AVOIDANCE BY NON-DISTRIBUTION OF DIVIDENDS-Oceanfreight (E.A) Limited versus Commissioner of Domestic Taxes
Section 24 of the income tax Act, CAP 470, empowers the commissioner to collect tax on dividend where a company is deemed to be avoiding tax by non-distribution of dividend. However, subsection 4, provides that a company may be exempted….
Taxation Of Resident Life Insurance Business- Kenindia Assurance Company Limited Vs Commissioner Of Domestic Taxes
According to Section 19(5) of the income tax act CAP 470, A resident life Insurance company is taxed on amounts transferred from the Life fund for the benefit of shareholders. Kenindia transferred Sh. 25 million for the benefit of share …
Capital Gains on Business Reorganization Equity Bank Vs KRA
Equity bank Limited (EBL) entered into an arrangement of transferring its assets to Equity bank Kenya Limited (EBKL) a wholly owned subsidiary by Equity Bank Holdings Limited (EBHL). The transaction was marred with the following controve…
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 …
Interest Expense Incurred Wholly and Exclusively For Business- Tile and Carpet Centre Vs Commissioner Domestic Taxes
Tile and carpet centre deposited money with its advocates for the purpose of buying land for its sister company Tile & Carpet Centre development Ltd. The money was later refunded by the advocates. The commissioner contended that …
Offsetting tax refunds- National Bank of Kenya Limited (Appellant) vs. Commissioner of Domestic Taxes (Respondent)
The national bank of Kenya claimed to offset the corporate tax liability against tax credits arising from foreign taxes under credit under special arrangement in section 42 of the income tax act. The bank relied on section 47, tax pro…
VAT on imported services-Google Kenya Ltd vs. Commissioner of Domestic Taxes
Google Kenya was offering marketing and support services to Google Ireland and held to the position that these were exported services thus Zero rated services. Google Kenya further argued that Kenyan customers contract directly with …
Tax refund decision – Commissioner of domestic taxes Vs Sony Holdings ltd(2020)
Sony holdings a shopping mall in Nairobi applied for tax refund amounting to Kshs. 33,187,669.00 under Sec 47 of the Tax procedures act. The mall experienced losses in the years 2013 and 2014. The commissioner went on to audit the tax…
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…