The Kenya Revenue Authority scored a win after the High Court upheld its withholding and corporation tax assessment against Space Investments Limited.
The taxpayer had challenged the finding of the Tax Appeals Tribunal that money lent to it by its main director was subject to Withholding Tax on deemed interest.
The Taxpayer had also contested an assessment for Corporation Tax claiming that the gain it made for the sale of land in Karen to a related entity was not a trading gain rather a capital gain and therefore subject to Capital Gains Tax.
That since Capital Gains Tax was under suspension in 2010 when the sale took place, no taxes were payable on the gain.
The High Court agreed with the authority that the taxpayer was in real estate business; the sale of land was made in the course of its business and the gain was an indication of a profit motive and therefore it was a trading gain subject to Corporation Tax.
The High Court, in its judgment upheld tax assessments for both Withholding Tax and Corporation Tax aggregate amounting to Sh823,770,478.
On a separate occasion, a company director and his driver have been fined a total of Sh2.5 million- or one-year imprisonment by Milimani law court after they pleaded guilty to a charge of possession of counterfeit excise stamps.
Francis Mwaura Muthoni, a director at Janfra Enterprises, a company that manufactures mineral water and sells wholesale in various places in the country.
