Comments to answers

Juakali Ltd is a limited liability company registered in Kenya and is the business of selling spare parts in Kirinyaga Road within Nairobi County. He was issued with a pre- assessment of Kshs.2,000,000.00 after variances were noted between the declared sales in the VAT3 and Income Tax returns and the audited accounts for the period January to December 2017. The financial statements of the taxpayer for the period prior to 2017 was Kshs.6,365,102.00.Th
e additional assessments were issued and the Taxpayer objected to the same and an objection decision was thereafter issued by the Authority.
The Taxpayer filed a case at the Tribunal and argued that they were not eligible to register for VAT in 2017 since their turnover was below 5Million. The Authority argued that the Taxpayers Income tax returns filed by the Taxpayer for the year of income ended December 2017 indicated an income of Kshs.5,054,596.00 hence the justification to proceed and charge VAT.
a) Was the Authority justified in its decision? Explain.
b) What would be KRA justification in this case?
c) Write a detailed Judgement from the above facts on how the Tax Appeal's Tribunal is
likely to rule in the above tax dispute

Qehscvuwgfwuf vcqwwuqgfuwgff cvsufcuw gf

Qehscvuwgfwuf vcqwwuqgfuwgff cvsufcuw gf