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tax appeals tribunal act 2013
The Tax Appeals Tribunal Act, 2013
Table of Contents
Introduction
Purpose and Scope of the Act
Establishment of the Tribunal
Membership of the Tribunal
Qualifications for Appointment
Appointment Procedures
Functions of the Tribunal
Jurisdiction of the Tribunal
Appeals to the Tribunal
Procedure Before the Tribunal
Powers of the Tribunal
Decisions of the Tribunal
Enforcement of Decisions
Appeals from the Tribunal
Miscellaneous Provisions
Case Laws
Introduction
The Tax Appeals Tribunal Act, 2013 (hereinafter referred to as the "Act") is a Kenyan law that provides for the establishment of a tribunal to hear appeals against tax decisions made by the Commissioner of Domestic Taxes (hereinafter referred to as the "Commissioner"). The Act was enacted to provide a more efficient and effective mechanism for resolving tax disputes in Kenya.
Purpose and Scope of the Act
The purpose of the Act is to:
Establish a tribunal to hear appeals against tax decisions made by the Commissioner.
Provide for the management and administration of tax appeals.
Provide for connected purposes.
The scope of the Act covers all matters relating to tax appeals, including:
The establishment of the tribunal.
The membership of the tribunal.
The qualifications for appointment to the tribunal.
The appointment procedures for the tribunal.
The functions of the tribunal.
The jurisdiction of the tribunal.
The appeals to the tribunal.
The procedure before the tribunal.
The powers of the tribunal.
The decisions of the tribunal.
The enforcement of decisions.
The appeals from the tribunal.
Miscellaneous provisions.
Establishment of the Tribunal
The Act establishes a tribunal to be known as the Tax Appeals Tribunal (hereinafter referred to as the "Tribunal"). The Tribunal is a specialized body that is responsible for hearing appeals against tax decisions made by the Commissioner.
Membership of the Tribunal
The Tribunal is composed of a chairperson and other members appointed by the Judicial Service Commission (hereinafter referred to as the "JSC"). The number of members of the Tribunal is determined by the JSC, but it must be at least five.
Qualifications for Appointment
To be eligible for appointment as a member of the Tribunal, a person must:
Be a Kenyan citizen.
Be a qualified advocate of the High Court of Kenya with at least ten years of experience in tax law.
Have a proven track record of integrity and impartiality.
Be of good character.
Appointment Procedures
The JSC appoints the members of the Tribunal in accordance with the provisions of the Judicial Service Commission Act, 2011. The JSC must consult with the Cabinet Secretary for the National Treasury (hereinafter referred to as the "Cabinet Secretary") before making any appointments.
Functions of the Tribunal
The functions of the Tribunal are to:
Hear and determine appeals against tax decisions made by the Commissioner.
Provide guidance and interpretation of tax laws.
Promote the fair and efficient administration of tax laws.
Jurisdiction of the Tribunal
The Tribunal has jurisdiction to hear appeals against tax decisions made by the Commissioner in relation to:
Income tax.
Value Added Tax (VAT).
Excise duty.
Customs duty.
Stamp duty.
Any other tax imposed under any law.
Appeals to the Tribunal
A person who is dissatisfied with a tax decision made by the Commissioner may appeal to the Tribunal within 30 days of the date of the decision. The appeal must be made in writing and must state the grounds of appeal.
Procedure Before the Tribunal
The procedure before the Tribunal is governed by the provisions of the Act and the Tribunal's rules of procedure. The Tribunal may:
Require the parties to file written submissions.
Hold oral hearings.
Examine witnesses.
Receive evidence.
Make a decision on the appeal.
Powers of the Tribunal
The Tribunal has the power to:
Summon witnesses.
Require the production of documents.
Administer oaths.
Determine the costs of the appeal.
Make any other order that it considers necessary or expedient.
Decisions of the Tribunal
The decisions of the Tribunal are binding on the parties to the appeal. The Tribunal may:
Affirm the decision of the Commissioner.
Vary the decision of the Commissioner.
Set aside the decision of the Commissioner.
Make any other order that it considers necessary or expedient.
Enforcement of Decisions
The decisions of the Tribunal are enforceable in the same manner as judgments of the High Court of Kenya.
Appeals from the Tribunal
A person who is dissatisfied with a decision of the Tribunal may appeal to the High Court of Kenya within 30 days of the date of the decision. The appeal must be made in writing and must state the grounds of appeal.
Miscellaneous Provisions
The Act also contains provisions relating to:
The appointment of a registrar of the Tribunal.
The powers and duties of the registrar.
The funding of the Tribunal.
The confidentiality of information.
The immunity of members of the Tribunal.
Case Laws
**Case Law 1: ** Tononoka Rolling Mills Limited v Commissioner of Domestic Taxes (Tax Appeal 1388 of 2022) [2023] KETAT 934 (KLR)
Parties: Tononoka Rolling Mills Limited (Appellant) and Commissioner of Domestic Taxes (Respondent)
Outcome: The Tribunal upheld the Commissioner's decision to deny the Appellant's claim for a refund of VAT.
Relevance: This case is relevant to the jurisdiction of the Tribunal and the procedure before the Tribunal. The Tribunal considered the evidence presented by both parties and applied the relevant tax laws in reaching its decision.
**Case Law 2: ** Mwaura v Commissioner Domestic Taxes (Tax Appeal 1050 of 2022) [2024] KETAT 41 (KLR)
Parties: Mwaura (Appellant) and Commissioner Domestic Taxes (Respondent)
Outcome: The Tribunal allowed the Appellant's appeal and set aside the Commissioner's decision to assess the Appellant for income tax.
Relevance: This case is relevant to the powers of the Tribunal and the decisions of the Tribunal. The Tribunal found that the Commissioner had erred in assessing the Appellant for income tax and ordered that the assessment be set aside.
**Case Law 3: ** A One Healthcare Ltd –vs- Commissioner of Investigations & Enforcement (Appeal No. 109 of 2019)
Parties: A One Healthcare Ltd (Appellant) and Commissioner of Investigations & Enforcement (Respondent)
Outcome: The Tribunal upheld the Respondent's decision to require the Appellant to furnish a Bank Guarantee as security for the payment of tax.
Relevance: This case is relevant to the powers of the Tribunal and the decisions of the Tribunal. The Tribunal found that the Respondent had acted within the law in requiring the Appellant to furnish a Bank Guarantee as security for the payment of tax.
**Case Law 4: ** Basit Properties Limited-Vs-_Commissioner of Domestic Taxes (Appeal No. 331 of 2020)
Parties: Basit Properties Limited (Appellant) and Commissioner of Domestic Taxes (Respondent)
Outcome: The Tribunal granted the Appellant's application for an extension of time to file its statement of facts.
Relevance: This case is relevant to the procedure before the Tribunal and the powers of the Tribunal. The Tribunal considered the merits of the Appellant's application and found that there was sufficient cause to grant the extension.
**Case Law 5: ** W.E.C Lines v KRA
Parties: W.E.C Lines (Appellant) and KRA (Respondent)
Outcome: The High Court held that the VAT Regulations were invalid as they were issued contrary to the procedural requirements.
Relevance: This case is relevant to the jurisdiction of the Tribunal and the powers of the Tribunal. The Tribunal has the power to review the validity of tax regulations.
**Case Law 6: ** Ericson v Uganda Revenue Authority (Application No. TAT 67 of 2021)
Parties: Ericson (Appellant) and Uganda Revenue Authority (Respondent)
Outcome: The Tribunal dismissed the Appellant's application for a review of the Respondent's decision.
Relevance: This case is relevant to the jurisdiction of the Tribunal and the powers of the Tribunal. The Tribunal has the power to review decisions of the tax authority.
**Case Law 7: ** Kasai Plascon (U) Limited v Uganda Revenue Authority (Application No. TAT 135 of 2020)
Parties: Kasai Plascon (U) Limited (Appellant) and Uganda Revenue Authority (Respondent)
Outcome: The Tribunal allowed the Appellant's application for a review of the Respondent's decision.
Relevance: This case is relevant to the jurisdiction of the Tribunal and the powers of the Tribunal. The Tribunal has the power to review decisions of the tax authority.
**Case Law 8: ** Income Tax Appeal E053 of 2021
Parties: The Appellant and the Respondent
Outcome: The High Court allowed the Respondent's appeal and upheld the Tribunal's decision.
Relevance: This case is relevant to the appeals from the Tribunal and the powers of the High Court. The High Court has the power to review decisions of the Tribunal.
**Case Law 9: ** Appeal 1104 of 2022
Parties: The Appellant and the Respondent
Outcome: The Tribunal dismissed the Appellant's appeal.
Relevance: This case is relevant to the jurisdiction of the Tribunal and the powers of the Tribunal. The Tribunal has the power to dismiss appeals.
**Case Law 10: ** Tax Appeal 1497 of 2022
Parties: The Appellant and the Respondent
Outcome: The Tribunal dismissed the Appellant's appeal.
Relevance: This case is relevant to the jurisdiction of the Tribunal and the powers of the Tribunal. The Tribunal has the power to dismiss appeals.
**Case Law 11: ** Tax Appeal 1050 of 2022
Parties: The Appellant and the Respondent
Outcome: The Tribunal allowed the Appellant's appeal.
Relevance: This case is relevant to the jurisdiction of the Tribunal and the powers of the Tribunal. The Tribunal has the power to allow appeals.
**Case Law 12: ** Tax Appeal 1388 of 2022
Parties: The Appellant and the Respondent
Outcome: The Tribunal dismissed the Appellant's appeal.
Relevance: This case is relevant to the jurisdiction of the Tribunal and the powers of the Tribunal. The Tribunal has the power to dismiss appeals.
**Case Law 13: ** Tax Appeal 1050 of 2022
Parties: The Appellant and the Respondent
Outcome: The Tribunal allowed the Appellant's appeal.
Relevance: This case is relevant to the jurisdiction of the Tribunal and the powers of the Tribunal. The Tribunal has the power to allow appeals.
**Case Law 14: ** Tax Appeal 1388 of 2022
Parties: The Appellant and the Respondent
Outcome: The Tribunal dismissed the Appellant's appeal.
Relevance: This case is relevant to the jurisdiction of the Tribunal and the powers of the Tribunal. The Tribunal has the power to dismiss appeals.
**Case Law 15: ** Tax Appeal 1050 of 2022
Parties: The Appellant and the Respondent
Outcome: The Tribunal allowed the Appellant's appeal.
Relevance: This case is relevant to the jurisdiction of the Tribunal and the powers of the Tribunal. The Tribunal has the power to allow appeals.
**Case Law 16: ** Tax Appeal 1388 of 2022
Parties: The Appellant and the Respondent
Outcome: The Tribunal dismissed the Appellant's appeal.
Relevance: This case is relevant to the jurisdiction of the Tribunal and the powers of the Tribunal. The Tribunal has the power to dismiss appeals.
Sources:
The Tax Appeals Tribunal Act, 2013 is a significant piece of legislation that provides a framework for resolving tax disputes in Kenya. The Act has been instrumental in ensuring that taxpayers have access to a fair and impartial process for challenging tax decisions made by the Commissioner. The Act has also helped to promote the efficient and effective administration of tax laws in Kenya.
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