Lecture 23 Β· Jilk Construction claimed the credits and denied the income.
π»ππ πͺπππ πΉπππ: A contractor cut a KSh 1.38bn demand by more than KSh 1.3bn of disputed items wherever it had documents. Where it had only explanations, and where it had already used the certificates it was disputing, the Tribunal let KRA's figures stand.
Precursor
The case
Jilk Construction took over the Bura Irrigation and Settlement Scheme rehabilitation in Tana River County from another contractor, and worked for clients including the Kenya Ports Authority and Kenya Breweries. An audit of 2019 to 2024 produced a demand of KSh 1.38bn: KSh 737m in corporation tax, KSh 331m in VAT and KSh 313m in PAYE.
Jilk objected, and it won wherever it had paper. KRA had found nearly KSh 979m more income than Jilk declared, much of it from errors in KPA's own purchase records. When Jilk produced letters and emails from KPA confirming the errors, KRA removed more than KSh 891m. Withholding certificates covering money clients had held back, or recorded wrongly, cost Jilk too. Where it showed timing differences and entry errors, KRA removed more than KSh 500m.
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Precursor is published by the FinTech Association of Kenya and exercises independent editorial judgement under the Editorial Independence Charter. This article is labelled Precursor Executive Classroom, which marks commercial material. Knowledge on Tax and financial judgement.
Lecture 2 Β· KRAβs own letter saved Maisha Mabati KSh 1.44bn.
π»ππ πͺπππ πΉπππ: The Tax Appeals Tribunal held the Commissioner to a VAT exemption it had confirmed three times. The company won. Its board should never have needed to.
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Lecture 8 Β· Joyland Steel pooled the money and not the records.
π»ππ πͺπππ πΉπππ: A scrap dealer bought in bulk with money from smaller dealers, passed through its own bank account. KRA taxed the flows as Joyland's business. With no ledger showing whose money was whose, the Tribunal upheld KSh 87m.
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Lecture 12 Β· Savla would not say who his suppliers were
π»ππ πͺπππ πΉπππ: Accused of using fake invoices, a trader refused KRA's requests for his suppliers' addresses, contacts and payment records, calling them unreasonable. He won at the Tribunal and lost in the High Court and the Court of Appeal.
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