National Bank of Kenya Limited

The Appellant had moved to the TAT seeking to overturn the Respondent’s corporation income tax (CIT) assessment relating to alleged underpayment of CIT for the period 2015 - 2018. The underpayment was as a result of the Appellant’s utilization of tax overpayments from 2014 in offsetting CIT liabilities in later years.

ISSUES FOR DETERMINATION

The issues for determination were whether:

i. The Appellant was entitled to tax credits as per s.42 of the TPA;

ii. It is justified for the Appellant to utilise the tax overpayment to offset tax liabilities in subsequent years; and

iii. The taxes confirmed by the Respondent via the Objection Decision (31 August 2020) were payable.

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Seven Seas Technologies Limited

i) Whether payment for software license (as a vendor) for the purpose of resale to customers constitutes payment of a royalty.

ii) Whether payment of software license for own in-business use without a right to make copies of a license constitutes payment of royalties

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Seaforth Shipping (K) Limited

MATTERS FOR DETERMINATION

i) Whether Passage of non resident employee is taxable and whether expenses relating to the same are non taxable benefits.

ii) Whether Passage of non resident employee is taxable and whether expenses relating to the same are non taxable benefits.

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Rabai Operations & Maintenance L1mited

Does the Appellant have the statutory right to deduct the input VAT pertaining-to the period when the Appellant was not
registered for VAT

Was the right to deduct input VAT under section 11 of the VAT Act subject to filing of returns and was there any refence to returns to the said section

Was the late filing of returns in any way caused by failure of the respondent

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Pwani Oil Products Limited

The Appellant imports and refines/processes edible oils for both the local and export
markets.

During the period 2012 - 2013 the Appellant applied for and was granted
remission for Value Added Tax (VAT) in respect of crude palm oil products
imported for manufacture of Oil products for export, namely but not limited to vegetable oils/fat, laundry bar soap and glycerin.

2. The Respondent gave the remission on condition that the Appellant executes security bonds for the due performance under the remission scheme and further that the raw materials imported by the Appellant were for the manufacture of goods for export
purposes. The purpose of the security bonds is to enable the Respondent recover any taxes found due.

3. The Respondent executed the said security bonds and proceeded to import the raw materials i.e. crude oil and palm oil and manufactured products for exports to
various destinations.
The Tribunal will address the issues of both the Appellant and the Respondent simultaneously as hereunder.

4. While agreeing with the Appellant that the word 'return' does not
appear In Section 11(1) of VAT Act Cap 476 Laws of Kenya, it is clear that the said Section should be construed in reference to other related
provisions of the Act and not in isolation.

5. The Tribunal notes that the only way one can claim deduction of
input VAT is by filing the VAT Returns. Hence, the Tribunal finds that it does not agree with the argument of Appellant that there can be
any other way to claim input VAT by way of declaring the same in the VAT Returns

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