Kakuzi wins as tribunal bars Sh16m KRA tax claim

KAKUZI

The entrance to the Kakuzi factory in Makuyu, Muranga County. 

Photo credit: File| Nation Media Group

The Tax Appeal Tribunal has blocked the Kenya Revenue Authority (KRA) from taxing commissions paid to international marketing agents of agricultural firm, Kakuzi, marking a major victory for firms with contracted non-resident salespersons.

The team said commissions paid to global marketing agents cannot be subjected to withholding tax, adding that KRA does not have a right to tax the agency fees or management and professional fees.

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Note: The results are not exact but very close to the actual.