The issues for determination on basis of both the oral and written submissions on record before Tribunal are whether;

i) PAYE is payable on emoluments paid to non-Italian expatriates working for the Appellant outside Kenya;

ii) Taxation is due on housing benefit in respect of Kenyan employees who are on foreign assignment.

The assessment as made is on wrongful inference that expatriates working in Kenya meet residency rule.

i) The commissioner did not consider fragile security situation and explanations provided and thereby failing to appreciate all the issues before him when arriving at the additional assessment in the appellants case.

II) The security situation in Somalia and the established safety guidelines on housing does not allow either the Appellant or the employees to freely choose where to live while in Somalia.

In respect of the collection of tax a statutory duty is, therefore, imposed on the employer, and if it fails to deduct tax, it is in breach of that duty and is liable to pay the tax to the revenue authorities whether it has deducted it or not.