THE LAW

The Commissioner shall make the objection decision within sixty days from the date of receipt of- 

a. The notice of objection; or 

b. Any further information the Commissioner may require from the taxpayer.”

ANALYSIS

Eastleigh Mall Limited vs. Commissioner of Investigations and Enforcement Income Tax Appeal No. E068 of 2020. In a costly error, the Kenya Revenue Authority (KRA) has lost over Sh360 million intax case due to a procedural mistake. In this significant ruling, the High Court definitively established that the provisions of Section 51(11) of the Tax Procedures Act hold a mandatory status and are not merely cosmetic in nature. As a result of this landmark decision, it was  clarified that if the Commissioner fails to render an Objection Decision within the stipulated 60-day timeframe, the taxpayer's objection shall be deemed accepted automatically by operation of the law.

The High Court in Commissioner of Domestic Taxes -vs- Fortune Container Depot Tax Appeal Case No. E060 of 2020 held that a delay of ...