Automated Summary
Key Facts
Tax Appeal Tribunal granted Wenton Enterprises' application to file an appeal out of time, finding the applicant's reason for delay (Yahoo email deletion) reasonable, the application filed without undue delay, and the Respondent would not suffer prejudice. The Tribunal found the appeal to be arguable, with the objection decision dated September 2, 2021, having been issued over 20 months after the objection was lodged.
Issues
- The Tribunal examined whether the Commissioner of Domestic Taxes would suffer prejudice if the extension of time was granted. The Tribunal found that the respondent would not suffer prejudice as the applicant would still be liable for taxes with penalties and interest if found at fault.
- The Tribunal determined whether the appeal was merited by assessing if there were triable issues that could only be resolved through an evidentiary hearing. The Tribunal found that the appeal had arguable merits and triable issues.
- The Tribunal considered whether the applicant's claim that its Yahoo email account had been deleted due to inactivity was a reasonable cause for the 1 year and 10 months delay in filing the appeal. The Tribunal found this reason to be satisfactorily established as reasonable.
Holdings
The Tribunal granted the application for extension of time, finding the delay was reasonable, the appeal is merited, and the Respondent would not suffer prejudice. The Tribunal allowed the Applicant to file an appeal out of time.
Remedies
The Tribunal granted the Applicant's application for extension of time, allowing the Applicant to file an appeal out of time. The Notice of Appeal dated July 14, 2023 was deemed duly filed. No costs were awarded.
Tax Issue Category
Other
Legal Principles
The Tribunal exercised its discretionary power to extend time for filing the appeal, considering delay length, reason for delay, appeal merit, and potential prejudice to the Respondent.
Precedent Name
- Nicholas Kiptoo Arap Korir Salat v. Independent Electoral and Boundaries Commission
- Katahira & Engineers International v Commissioner of Domestic Taxes
- Wasike v Swala
- Utalii Transport Company Limited & 3 Others v NIC Bank Limited & Another
- Chairman, Kenya National Union of Teachers & Another v Henry Inyangala & 2 Others
- Leo Sila Mutiso -v- Rose Hellen Wangari Mwangi
Cited Statute
- Tax Procedures Act
- Constitution of Kenya
- Tax Appeals Tribunal Act
Judge Name
- ELISHAH N. NJERU
- ABRAHAM K. KIPROTICH
- EUNICE N. NG'ANG'A
- MUTISO MAKAU
- ERIC NYONGESA WAFULA
Passage Text
- It is therefore the Tribunal's finding that the reason tendered by the Applicant has been satisfactorily established to be a reasonable cause for the delay to the Tribunal.
- The Tribunal, therefore, finds that the Respondent will not suffer prejudice if the extension is granted.
- It must be remembered that the question whether an appeal is arguable, does not call for the interrogation of the merit of the appeal, and the Court, at this stage must not make any definitive findings of either fact or law. An arguable appeal is not one which must necessarily succeed, but one which ought to be argued fully by the Court.