a) Whether the supply made by the appellant to TKL and EWKL
shall be treated as supply of taxable services rendered to local
parties or export of services as invoiced to EAB.
b) Whether the amount received from EAB shall be considered as a
loan or payment
in lieu of dues from TKL and EWKL and shall be considered as
taxable income.

a) That the decision made by the Respondent on 27th June 2013, be
quashed and or be set aside.

b) A declaration that the donation or grant received by the Appellant
from Ericsson AB is not subject to the provisions of the VAT Act in
its totality.

c) A declaration that the amount received by the Appellant from
Ericsson AB was a mere donation or grant and is not subject to tax
adjustments.

d) That the Appellant is not liable to pay VAT of Ksh:437,288,049
and Ksh:363,388,403 (inclusive of penalties and interests) to the
Respondent as per assessment number 1520110000500 and
1520130000590 respectively.

e) A declaration that the tax assessment number 1520130000590 is
illegal and void ab initio.

f) That the Respondent be restrained and or barred from claiming
Ksh:437,288,049 and Ksh:363,388,403 (inclusive of penalties and
interest) from the Appellant.

g) Orders declaring that the Respondent acted illegally, arbitrarily and
ultra vires in applying the cost-plus method in determining the
appellant's revenue.

h) The cost of this VAT appeal

The Appellant brought to the notice of the Tribunal through its
evidence and submissions that the Respondent had in 2009 recognized
the Appellant as a distinguished taxpayer. The Tribunal notes that this
did not absolve the Appellant from its tax obligations and liabilities.
31. The Tribunal, in the circumstances finds that there is no merit in this
Appeal and upholds the Respondent's tax Assessments. The appeal is
hereby dismissed with no orders as to the costs and the same orders
also apply to the Appeal No. 49 of 2016.