Audit Triggers
Actionable insights from legal citations and institutional intelligence for legal professionals.
| Citation | Industry | Audit Point / Trigger | Outcome |
|---|---|---|---|
| Centsavvy Capital Ventures Limited v Commissioner of Investigation and Enforcement (Tax Appeal E156 of 2023) [2024] KETAT 1321 (KLR) (23 August 2024) (Judgment) | Provision of advances and loans to individuals and corporations. | The investigations were triggered by the assertion that the Appellant filed income tax returns only for the year 2018 and had filed Nil returns for VAT for the period under review. | Read Full Analysis |
| Doshi and Company Hardware Limited v Commissioner Customs and Border Control (Tax Appeal E402 of 2023) [2024] KETAT 1322 (KLR) (23 August 2024) (Judgment) | The importation, manufacturing, trading and distribution of various building and construction materials but not limited to steel channels. | The Respondent conducted a post clearance audit of the Appellant’s imported consignments. | Read Full Analysis |
| Car and General (Trading) Limited v Commissioner of Legal Services and Board Coordination (Appeal E667 of 2023) [2024] KETAT 1235 (KLR) (23 August 2024) (Judgment) | principal activity is the sale and service of motorcycles, household goods, agricultural tractors and implements, marine engines, three-wheeler vehicles, commercial laundry equipment, commercial engines, forklifts, excavators, power equipment and general goods. | The Appellant vide a letter dated 20th January, 2023 sought a private ruling from the Respondent regarding whether it could include the share of profit from Watu Credit and Cummins C & G Joint Venture in determining it’s earnings before interest, tax, depreciation, and amortization (EBITDA).The Respondent through a private ruling dated 1st March, 2023 informed the Appellant that it could not include the share of profits from Watu Credit and Cummings C & G Joint Venture in its EBITDA. The Respondent thereafter vide a letter dated 17th May, 2023 issued a pre-assessment notice informing the Appellant of its intention to amend its Corporation tax return for the year of income ended September 2022 to restrict the deductible interest expense. | Read Full Analysis |
| Kone Kenya Limited v Commissioner of Legal Services and Board Coordination (Tax Appeal 113 of 2023) [2024] KETAT 1242 (KLR) (23 August 2024) (Judgment) | The Appellant is a fully owned subsidiary of KONE Finland and therefore part of the larger KONE Group. KONE Group is in the business of making and disposal of elevators and escalators around the globe and in countries where it has presence. | The genesis of this dispute was the imposition of transfer pricing adjustments by the Respondent on the Appellant’s transactions. | Read Full Analysis |
| Sunpower International Limited v Commissioner of Customs and Border Control (Tax Appeal E437 of 2023) [2024] KETAT 1245 (KLR) (23 August 2024) (Judgment) | Its main form of business is in the installation and servicing of industrial solar plants, fiberglass-reinforced PPR piping systems, and photovoltaic solar systems. | Misclassified tariff codes | Read Full Analysis |
| Villa Grazia Luxury Hotel Limited v Commissioner of Domestic Taxes (Appeal E413a of 2023) [2024] KETAT 1251 (KLR) (Nairobi) (23 August 2024) (Judgment) | The Appellant is in the business of accommodation and food services along the Naivasha-Nakuru Highway. | Under declared sales in the Appellant’s January 2023 VAT return and lack of documentation for declaration of exempt and zero rated sales | Read Full Analysis |
| Three Rivers Resort Limited v Commissioner of Domestic Taxes (Tax Appeal E451 of 2023) [2024] KETAT 1252 (KLR) (23 August 2024) (Judgment) | Hotel business | The additional income tax assessments were based on under declaration of purchases in the income tax returns for the tax year 2021 which were construed to mean under declaration of sales. | Read Full Analysis |
| Eldo-Rosta Construction Limited v Commissioner of Domestic Taxes (Tax Appeal E459 of 2023) [2024] KETAT 1277 (KLR) (23 August 2024) (Judgment) | Construction | The Respondent cited Section 42 of the Tax Procedures Act and stated that it issued the Agency notices to the Appellant’s creditors and banks after it noted that the Appellant had not made any attempts to settle its tax debt. | Read Full Analysis |
| Kenya Ports Authority v Commissioner of Domestic Taxes (Tax Appeal E499 of 2023) [2024] KETAT 1278 (KLR) (23 August 2024) (Judgment) | discharging such functions as are bestowed on it under the statute. | Income earned by Japan Port Consultants Ltd (JPCL) for the years 2020-2022 amounting to Kshs.78,533,571.00 (Inclusive pf penalty and intertest) on contractual consulting services (Detailed Design, Construction Supervision) was subject to withholding tax on income of a non-resident accrued and derived in Kenya. | Read Full Analysis |
| Narcol Aluminium Rolling Mills Limited v Commissioner of Legal Services and Board Co-ordination (Tax Appeal E835 of 2023) [2024] KETAT 1279 (KLR) (23 August 2024) (Judgment) | Manufacture and export of aluminum kitchenware in the sub-Saharan region. | Claim for refunds- In the absence of alleged exports in the Simba system, the claim for refunds cannot be entertained. | Read Full Analysis |