Lecture 19 Β· Kaka Gas asked KRA for the documents KRA had taken.
π»ππ πͺπππ πΉπππ: An LPG refiller said KRA officers took its original invoices during a verification and never returned them, then rejected its objection for lack of invoices. KRA denied taking anything. The Tribunal sent the case back to KRA to check its own files.
Precursor
The case
Kaka Gas Limited refills LPG cylinders. In early 2022 KRA verified its books for July 2021 to January 2022, examining sales records, purchase and sales invoices, delivery notes and other primary documents. Kaka says the officers took the originals away. KRA says they reviewed them on site and left them there.
KRA then assessed Kaka for under-declared sales, with a demand of KSh 33,349,259 including penalties and interest. By the time the company responded, its management had changed. The new managers appointed a tax agent and applied in January 2023 to object out of time. They explained that KRA held the original documents and asked KRA either to provide copies or to accept secondary evidence. They submitted schedules of input VAT and sales, backed by bank statements showing payments to suppliers, and paid KSh 2.5m as a sign of good faith.
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Precursor is published by the FinTech Association of Kenya and exercises independent editorial judgement under the Editorial Independence Charter. This article is labelled Precursor Executive Classroom, which marks commercial material. Knowledge on Tax and financial judgement.
Lecture 1 Β· I&M defeated a KSh713 million tax claim by tracing the entry.
π»ππ πͺπππ πΉπππ: The bank won by showing how a KSh1.31 billion adjustment moved between its accounts without producing income or a tax deduction. Its records were already before KRA. The dispute survived because the authority misread them.
Tax and financial judgement Β· 7 min read Β· Paid
Lecture 11 Β· Chairmania kept its input VAT on a disowned supplier.
π»ππ πͺπππ πΉπππ: KRA labelled an event company's equipment supplier a missing trader and disallowed KSh 15.8m of input VAT. The company had invoices, ETR receipts, payment records and ledgers. The Tribunal held that KRA, not the buyer, must investigate the supplier.
Tax and financial judgement Β· 4 min read Β· Paid
Lecture 15 Β· Twenty days cost Coca-Cola KSh 69.8m of input VAT.
π»ππ πͺπππ πΉπππ: Coca-Cola Beverages left January's input VAT out of its returns, then added it to an amended July return on the day July's return was due. The Tribunal held that the six-month window had closed on 31 July.
Tax and financial judgement Β· 4 min read Β· Paid