What was the relationship between the Appellant, DEA-PHC based in
South Sudan and DBG based in Somalia? Where are these institutions
registered?
2. What is a Permanent Establishment? Whether the Appellant is a
Permanent Establishment as provided for under Section 2 and 3 (2)(a)
(ii) of the Income Tax Act Cap 470 in relation to mode and manner
Judgement: Tax Appeals No. 46 of2015 Page 2
of operations between DEA Nairobi, DEA- PHC based In South
Sudan and DBG based in Somalia?

The Appellant filed the Memorandum of Appeal on 27th November 2013
together with their Statement of Facts against the decision by the
Commissioner demanding for Pay as you earn (PAYE) arrears from
employees of Diakonie Emergency Aid Primary Health Care (DEA- PHC) in
Rurnbek, South Sudan and Daryeel Bulsho Guud (DBG) in Mogadishu,
Somalia amounting to Kshs.63,866,780/= and Kshs, 27,245,989/=
respectively. The amended assessments were issued for Kshs. 2,273,725/=
and Kshs. 15,319, 659/= respectively to wit the Appellant was dissatisfied
and proceeded to lodge this Appeal.

1. The Tribunal having entered a finding that the disputed PAYE for the
non- resident employees of a foreign company working in South
Sudan and Somali are not taxable in Kenya, the Appeal succeeds and
the confirmed amended PAYE assessment of Kshs. 17.319.383/ is
expunged
2. Each party to bear their own costs.