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tax appeals tribunal act 2013
Tax Appeals Tribunal Act, 2013
Introduction
The Tax Appeals Tribunal Act, 2013, is a significant piece of legislation in Kenya that provides a structured mechanism for resolving tax disputes between taxpayers and the Kenya Revenue Authority (KRA). This Act establishes the Tax Appeals Tribunal (TAT), which is tasked with hearing and determining appeals against tax decisions made by the Commissioner of the KRA. The Act aims to ensure that tax disputes are resolved in a fair, efficient, and transparent manner.
Table of Contents
Overview of the Tax Appeals Tribunal Act, 2013
Establishment and Composition of the Tribunal
Jurisdiction and Powers of the Tribunal
Procedures for Filing Appeals
Key Provisions and Amendments
Relevant Case Laws
Conclusion
Sources
1. Overview of the Tax Appeals Tribunal Act, 2013
The Tax Appeals Tribunal Act, 2013, was assented to on 27th November 2013 and commenced on 1st April 2015. The Act consolidates provisions related to tax disputes from various existing statutes, thereby creating a unified framework for tax dispute resolution. The primary objective of the Act is to provide an independent and impartial forum for the resolution of tax disputes.
Source: Kenya Law Reports ↗
2. Establishment and Composition of the Tribunal
The Act establishes the Tax Appeals Tribunal, which is composed of members appointed by the Judicial Service Commission (JSC). The Tribunal consists of a chairperson and other members who possess expertise in tax law, accounting, and other relevant fields. The members are appointed for a term of three years, which is renewable.
Source: Kenya Law Reports ↗
3. Jurisdiction and Powers of the Tribunal
The Tribunal has jurisdiction to hear and determine appeals filed against any tax decision made by the Commissioner of the KRA. This includes decisions related to income tax, value-added tax (VAT), customs and excise duties, and other taxes administered by the KRA. The Tribunal has the power to:
Summon witnesses
Require the production of documents
Administer oaths
Make orders for the payment of tax or the refund of overpaid tax
Source: Kenya Law Reports ↗
4. Procedures for Filing Appeals
To file an appeal with the Tribunal, a taxpayer must submit a memorandum of appeal and supporting documents within 30 days of receiving the tax decision from the Commissioner. The appeal must be accompanied by a statement of facts and the grounds of appeal. The Tribunal then registers the appeal and schedules a hearing date.
Source: Kenya Law Reports ↗
5. Key Provisions and Amendments
The Tax Appeals Tribunal Act, 2013, has undergone several amendments to enhance its effectiveness. Notable amendments include:
The Tax Appeals Tribunal (Amendment) Bill, 2021, which proposed changes to streamline the operations of the Tribunal and improve the efficiency of tax dispute resolution.
The requirement for taxpayers to deposit 50% of the disputed tax amount with the Central Bank of Kenya as security during the appeal process.
Source: EY ↗
6. Relevant Case Laws
6.1 A One Healthcare Ltd v. Commissioner of Investigations & Enforcement
Parties: A One Healthcare Ltd (Appellant) vs. Commissioner of Investigations & Enforcement (Respondent)
Outcome: The Tribunal upheld the requirement for the appellant to furnish a bank guarantee as security for the payment of tax.
Relevance: This case highlights the Tribunal's authority to demand security for tax payments during the appeal process.
Source: Kenya Law Reports ↗
6.2 Tononoka Rolling Mills Limited v. Commissioner of Domestic Taxes
Parties: Tononoka Rolling Mills Limited (Appellant) vs. Commissioner of Domestic Taxes (Respondent)
Outcome: The Tribunal ruled in favor of the appellant, determining that the management and control of the company were not exercised in Kenya, thus it was not tax resident in Kenya for the year in question.
Relevance: This case elaborates on the criteria for determining tax residency for foreign companies.
Source: Kenya Law Reports ↗
7. Conclusion
The Tax Appeals Tribunal Act, 2013, plays a crucial role in Kenya's tax administration by providing a fair and efficient mechanism for resolving tax disputes. The establishment of the Tribunal ensures that taxpayers have an independent forum to challenge tax decisions made by the KRA. The Act's provisions and subsequent amendments aim to enhance the transparency and effectiveness of the tax dispute resolution process.
8. Sources
Answered by mwakili.com