In a recently concluded case, Kirin Pipes Ltd. contested KRA's tax assessment on bank deposits, claiming they were capital injections and loans, not income.
KRA issued additional income tax and VAT assessments after investigating Kirin Pipes' finances from 2019 to 2022.
The Tax Appeals Tribunal ruled against Kirin Pipes, citing insufficient evidence to prove deposits were not taxable income.
The case brought to light the importance of proper documentation to avoid taxation on non-income bank deposits.