Ocean Sports (2006) Limited v Commissioner of Domestic Taxes
Citation
Ocean Sports (2006) Limited v Commissioner of Domestic Taxes
Industry
Tourist hotel in Watamu area, The company is 100% foreign owned with JMN Investments Limited domiciled in Mauritius, holding 99% shareholding.
AUDIT Trigger
The fact that the amounts advanced by JMN Investments Limited to the Appellant have to be repaid, qualifies the advances as a loan. It further argued that the Appellant declared the said amounts advanced in its end year 2011, financial statements as borrowings, which reinforces the fact that they were to be repaid, hence qualifying as a loan. The said amounts were shown as a liability to the Appellant in their said end.
Outcome
Information pending further review