Kenya | |||||
Mocian Limitedvs Commissioner for Domestic Taxes |
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id : 32-202100  cat : Tax Appeals tribunal-Nairobi   | |||||
a) Whether the net income derived from the sale of the office suites by The Appellant is capital gains for purposes of corporation tax or; b) Whether the net income from the sale of the office suites were derived from a venture in the nature of trade and thus chargeable to corporation tax and if so; c) Whether part of the interest on those borrowings should be restricted and disallowed for corporation tax purposes to the extent of the office suites transferred to a sister concern. |
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Asked by : Admin
DOF : 03/03/2016 |
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SubmissionsPDF |
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The Appellant in the Memorandum of Appeal prays for the Orders being: - THAT the additional assessment plus all penalties and interest be set aside |
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Ruling |
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The net income arising out of the sale of the office suites is taxable as profit from a venture in the nature of trade and not as a realization of capital gains and finds in tl;)e circumstances that the amount of Kshs.198,846,571/= profit from the sale of the offices should be brought to charge and interest expense regarding offices transferred to a sister concern be restricted and disallowed for corporation tax purposes. Section 2(1) 3 (2)(a |
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posted by : Admin
DOR : 07/12/2016 |
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