Case Analysis: Reprieve For Tax Payers As Charge Of Minimum Tax Is Declared Unconstitutional

The Finance Act, 2020 amended the Income Tax Act (Cap 470) (Hereinafter the ITA) by inserting Section 12 D which introduced a new Tax known as Minimum Tax at the rate of 1% of the gross turnover effective 1st January 2021.

To implement the said amendment, the Kenya Revenue Authority (KRA) in January, 2021, published the “Guidelines on Minimum Tax” whose centrality was the definition of Gross Turnover.