(a) Whether there existed sales variances between the actual auction sales and sales declared by the Appellant;

(b)Whether interest expense that relates to the borrowings should be restricted proportional to interest free advances to related party and interest-bearing borrowings;

(c) Whether foreign exchange losses incurred through conversion of debt to equity is allowable;

(d) Whether withholding tax is chargeable on deemed interest in respect to interest free advances;

(e) Whether unreconciled sales between VAT3 returns and sales as per audited accounts are chargeable to VAT.

The Appellant objected to the assessment on the following grounds. -

i) The Commissioner erred in fact and in law in finding that withholding tax is payable by the Appellant;

ii) That Withholding tax demanded of Kshs.l0l,590,575/= inclusive of penalties and interest is excessive and erroneous;

iii) The tax loss adjustment of Kshs.343,666,656 is estimated and erroneous.

iv) The Commissioner' s assessment of VAT is not supported by existing VAT legislation

v) The Commissioner confirmed the assessment based on the computations which were largely estimated.

The tribunal having made the above findings dismisses the Appeal and Upholds the Confirmation of Assessment Notice dated 29th June 2015.

Each party to bear its own costs.