Airtel Kenya has lost a 16-year battle with the taxman over a disputed Sh531 million revenue claim from the telco’s purchase of an operation licence in 2000. High Court judge David Tuiyott ruled that Airtel’s $55 million (Sh5.5 billion) purchase of an operation licensce should not have been classified as revenue expenditure. The KRA reassessed Airtel’s books and held that the purchase should be treated as capital expenditure, triggering the now protracted Sh531 million tax arrears demand. However, Justice Tuiyott held that despite making payments in separate years, the licence purchase can be treated as a one-off payment. Airtel is currently operating on a licence acquired along with Essar’s (yuMobile) assets in a deal concluded early this year.

Source: Daily Nation November 22, 2016 18:56 UTC