Lecture 31 Β· The Kenya Roads Board called its interest public money, and the court taxed it anyway.
π»ππ πͺπππ πΉπππ: The Kenya Roads Board said the interest it earned was road money and untaxable. The High Court held that interest is taxable unless an exemption is written plainly, and that a noble purpose is not one.
Illustration: Precursor
A public body earns interest on surplus funds it holds for a dedicated purpose. It argues the interest is not income because it is all destined for that purpose. The tax authority disagrees.
Put yourself in the board's chair. Does the purpose of money decide whether the interest it earns is taxed?
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Lecture 32 Β· Naivas was run from Nairobi behind a Mauritian company, and a KSh5.2 billion sale was taxed in Kenya.
π»ππ πͺπππ πΉπππ: A Mauritian holding company sold a stake in Naivas for KSh5.2 billion, but the real decisions were made in Kenya. The tribunal held the company was a Kenyan tax resident and taxed the gain, then made a Kenyan arm pay it.
Tax and financial judgement Β· 3 min read Β· Paid