Tribunal says the tax authority wrongly treated the written-off loan principal as capital expenditure instead of stock-in-trade.
By
Joseph Wangui
Correspondent
Nation Media Group
The Kenya Revenue Authority (KRA) has lost its bid to deny Consolidated Bank of Kenya a Sh264.9 million bad debt tax deduction tied to unpaid loans by borrowers, marking a significant victory for the industry.
KRA had argued that discrepancies between import records, VAT returns, and financial statements justified additional tax…
The Court of Appeal has ruled that foreign exchange losses arising from debt-to-equity conversions are tax deductible.
KRA argued that although KenGen paid taxes on rental income, interest income and other miscellaneous income, it paid no tax on…
The dispute arose after KRA audited Sybrin Kenya for the period between January 2016 and December 2019 before issuing a VAT…
The taxes accrued while the company was in existence and, therefore, survived its dissolution, court says.
The authority is increasingly relying on third-party data, electronic invoices and transaction matching to ensure correct taxes…
