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Tax Appeals Tribunal Decision HS Classification Chapter 84>Customs Tax Consultant Kenya

During the process of customs clearance, the Respondent disputed the Appellant’s classification of the haemodialysers and upon review, determined that the applicable tariff classification was 8421.29.00 attracting import duty at the rate of 10% and VAT at the rate of 14%.   JUDGEMENT BACKGROUND The Appellant herein is a limited liability company incorporated in the […]

Tax Appeals Tribunal Decision HS Classification Chapter 76>Tax Consultant Kenya

On or about the 16thJune, 2020 the Respondent sent a demand notice to the Appellant for the amount of Kshs. 54,097,685.00 being alleged tax due for underpayment of duty on imported raw materials.   JUDGEMENT BACKGROUND The Appellant is a private company limited by shares and is duly incorporated under the Companies Act, 2015 within […]

Tax Appeals Tribunal Kenya Decision Customs Valuation Transaction Value>Customs Valuation

Upon arrival of the first shipment (“the consignment”) at the Inland Container Depot (“1CD”) in Nairobi on or about 4thAugust, 2020, the Appellant was informed, through its clearing agent DHL Global Forwarding, that the Respondent had referred the consignment for valuation on suspicion of undervaluation. Upon valuation, the Respondent ruled that the declared FOB value […]

Tax Appeals Tribunal Decision Customs Valuation>Tax Consultant Kenya

The Appellant asserted that based on the transactional cost and applying the guidelines provided for under Schedule IV of EACCMA and the WTO Agreement on Customs Valuation (ACV) the total tax payable was KES 6,009,359.00. The Appellant attached the C.17 form for Entry Number. 2019 ICD 8735 in support of this contention.   JUDGMENT   […]

Tax Appeals Tribunal Decision Is a Post Clearance Demand Letter a Commissioners Decision>Customs Tax Consultant Kenya

On 11th April 2017, the Respondent communicated its audit findings to the Appellant through a management letter. Among other things, the audit revealed the Appellant’s non-compliance with the provisions of Section 122 of the East African Community Customs Management Act, 2004 (EACCMA). As a result, the Respondent raised an assessment of Kshs. 8,833,994.00. JUDGMENT INTRODUCTION […]

Tax Appeals Tribunal Decision Release of Goods in Dispute with Customs>Tax Consultant Kenya

The Applicant stated that its request for release of its goods pending appeal had been rejected by the Commissioner. Section 229 (6) of the EACCMA as relates to stay of execution of a decision pending appeal provides that: JUDGEMENT Before the Tribunal is an application by way of Notice of Motion dated 14th February 2022 […]

Tax Appeals Tribunal Decision Post Clearance Valuation Related Parties>Customs Tax Consultant Kenya

The Respondent carried out a Post Clearance Audit (“PCA”) of the Appellant’s import operations for the period August 2014 to July 2019. Arising from this exercise, the Respondent issued, in a letter dated 18th December 2019, a demand for additional import duties amounting to Kshs 111,002,534.00 inclusive of penalties and interest. This amount was made […]

Tax Appeals Tribunal Decision Customs Post Clearance Valuation>Tax Consultant Kenya

The Respondent then undertook a post clearance audit of the Appellant’s operations covering the period January 2015 to December 2019. The audit established that twenty-six (26) import transactions by the Appellant contravened Customs laws and requirements. JUDGMENT BACKGROUND The Appellant is a limited company duly incorporated and licensed in Kenya carrying out the business of […]

Tax Appeals Tribunal Decision Customs Valuation>Customs Tax Consultant Kenya

By a letter dated 11thSeptember 2009 referenced HQ/PCA/F/060/2007, the Respondent demanded additional revenue amounting to Kshs. 702,334,527.00 in respect of crude palm oil, palm stearin, crude palm olein, Crude degummed soya bean oil and crude palm kernel oil imported by the Appellant. Subsequently, the Respondent issued agency notices dated 23rd September, 2009 to the Appellant’s […]

Tax Appeals Tribunal Decision Customs Valuation Tyres>Tax Consultant Kenya

The Respondent, in 2006, acknowledged that there were issues with the valuation of tyres imported from China, importers valued the tyres at different prices regardless of the fact that the goods were either identical or similar and originated from the same Country. Additionally, the Respondent concluded that values of the tyres declared by the various […]