Synopsis

On 9th February, 2024, the TAT delivered its verdict in the Tax Appeal No. 866 of 2022. The key issues being contested was whether the Appellant (Taxpayer) applied arm’s length price when selling products to its related parties (in Uganda, Tanzania, Ghana, and Nigeria) and whether the TP method applied was the most suitable one. The Appellant applied the Transactional Net Margin Method (TNMM) in determining the intercompany prices. However, during the tax audit, the Kenya Revenue Authority (“Respondent”) held that the Comparable Uncontrolled Price (CUP) method should have been applied. 
 

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