Judgment summary
The Tax Appeals Tribunal at Nairobi heard an appeal by Golda Technologies Limited against the Commissioner for Domestic Taxes concerning additional VAT and income tax assessments for various periods in 2023 and 2024, and for the years 2020 and 2021.
The Tribunal considered two issues: whether the Objection Decision was issued within the statutory timelines under Section 51 of the Tax Procedures Act, and whether the Objection Decision dated 7th November 2025 was justified.
The Tribunal found that the Objection Decision fell within the sixty-day statutory period when computed from 30th September 2025, the date it found the Appellant had validated its objection by providing supporting documents. The Tribunal also found that the question of a purported second Objection Decision via iTax on 9th December 2025 was moot.
On the merits, the Tribunal found that the Appellant had not discharged its burden of proof under Section 56(1) of the Tax Procedures Act and Section 30 of the Tax Appeals Tribunal Act, having failed to provide documents such as bank statements, audited financial statements, general ledgers, contract documents and supporting invoices. The appeal was dismissed and the Objection Decision upheld.
Background
The Appellant is a limited liability company incorporated in Kenya whose principal business involves construction and general supplies (para 1). The Respondent is the principal officer appointed under Section 13 of the Kenya Revenue Authority Act (para 2).
On 28th March 2025 and 17th April 2025, the Respondent issued additional VAT and income tax assessments respectively for the months of February, April and November 2023, and April 2024, and for the years 2020 and 2021 (para 3).
On 8th September 2025, the Appellant lodged a late objection application, which the Respondent approved by letter dated 15th September 2025 (para 4). The Respondent issued its Objection Decision on 7th November 2025, fully rejecting the objection, and this was communicated to the Appellant via email on 19th November 2025. Confirmation of Assessment Notices were later issued via iTax on 9th December 2025 (para 5). The Appellant lodged the present Appeal on 5th December 2025 (para 6).
Core dispute
The Appellant argued that the Objection Decision was issued out of time, contrary to Section 51(11) of the Tax Procedures Act, which requires a decision within 60 days, and that a further purported Objection Decision issued via iTax on 9th December 2025 was made without jurisdiction as the Notice of Appeal had already been filed and served (para 7a-c).
The Appellant further contended that the Respondent had not given comprehensive findings on documents provided, contravening Article 47 of the Constitution and the Fair Administrative Action Act, and that the Objection Decision issued on 19th November 2025 was invalid for not having been processed through iTax (para 7d-e).
On the substance, the Appellant disputed VAT of Kshs. 1,059,411.52 assessed for November 2023 on services provided to the Diocese of Marsabit Registered Trustees, said to hold a VAT exemption certificate, and disputed income tax assessed for 2020 and 2021 based on variances between VAT and income tax returns, attributed to land leases for gravel excavation and purchase of river sand from unregistered suppliers (para 7f-g). The Appellant also claimed it had provided documents on 30th September 2025 which the Respondent failed to review (para 7h).
The Respondent maintained that the Objection Decision of 7th November 2025 was issued within the statutory 60-day period, computed from 8th September 2025, and that subsequent iTax entries were administrative confirmations, not fresh Objection Decisions (paras 12-16). The Respondent further contended that the Appellant had failed to prove the VAT exemption applied and had not provided documents to substantiate the disputed variances (paras 23-26).
Court findings
The Tribunal found that the statutory timelines under Section 51(11) of the Tax Procedures Act presuppose a valid notice of objection, and that the Appellant had not validated its objection by 24th September 2025, only doing so by providing supporting documents in its email of 30th September 2025 (paras 35-36).
Accordingly, the Tribunal held that regardless of whether the Objection Decision was issued on 7th November 2025 or communicated on 19th November 2025, it fell within the statutory sixty-day period computed from 30th September 2025 (para 36). The Tribunal further found that the question of whether the iTax Confirmation of Assessment Notices issued on 9th December 2025 constituted a second Objection Decision was moot, since the Appellant's own Notice of Appeal referred to the Objection Decision given on 19th November 2025 (para 37).
On the merits, the Tribunal noted that the Respondent had sought bank statements, audited financial statements, general ledgers, expense support, contract documents and supporting invoices, none of which the Appellant fully provided, having only supplied copies of input receipts for the April 2024 VAT return and an Excel sheet analysing the 2021 income tax return (paras 39-40).
Applying Section 59, Section 56(1) of the Tax Procedures Act, and Section 30 of the Tax Appeals Tribunal Act, and citing Abyssinia Iron and Steel Ltd -vs- Commissioner of Customs and Border Control (TAT No. 435 of 2022), the Tribunal held that the Appellant had not discharged its burden of proof and that the Respondent's additional assessments as per the Objection Decision dated 7th November 2025 were justified (paras 41-45).
Outcome
The Tribunal held that the Appeal lacks merit and dismissed it (para 46a).
The Respondent's Objection Decision dated 7th November 2025 was upheld (para 46b).
Each party was ordered to bear its own costs (para 46c).
Major issues / areas of contention
- Whether the Respondent issued its Objection Decision within the statutory sixty-day timeline under Section 51(11) of the Tax Procedures Act.
- Whether the date from which the sixty-day period should run was affected by when the Appellant validated its late objection.
- Whether the iTax Confirmation of Assessment Notices issued on 9th December 2025 constituted a separate, jurisdictionally invalid Objection Decision.
- Whether the Objection Decision dated 7th November 2025 was procedurally valid despite communication by email rather than through iTax, and whether it complied with Article 47 of the Constitution and the Fair Administrative Action Act.
- Whether the Appellant proved that services to the Diocese of Marsabit Registered Trustees were VAT exempt.
- Whether the Appellant substantiated variances between VAT and income tax returns for 2020 and 2021 relating to land leases for gravel excavation and purchase of river sand.
- Whether the Appellant discharged its statutory burden of proof under Section 56(1) of the Tax Procedures Act and Section 30 of the Tax Appeals Tribunal Act.