JUDGMENT OF THE COURT
CIMBRIA (EA) LIMITED (the appellant) is a Limited Liability Company incorporated in Kenya, but is a subsidiary company of A/S Cimbria that is headquartered in Denmark.
Kenya Revenue Authority (the respondent), on the other hand is a body corporate established under Section 3 of the Kenya Revenue Authority Act (Cap 469 of the Laws of Kenya), which is capable in its corporate name, of suing and being sued. It is also a Government agency for the collection and receipt of all revenue.
By a letter dated 24th October, 2002 addressed to The Directors Cimbria E.A. Ltd, the respondent informed the appellant that it had carried out investigations on its accounts for the period 1993 – 2001, and had come to the conclusion that the appellant owed the respondent withholding tax to the tune of Kshs. 10,685,665/= and demanded payment of that amount.
In response to the said letter, the appellant, through its auditors/accountants, Mugo and Company wrote to the respondent explaining th…