Updated Wed, November 23rd 2016 at 00:00 GMT +3A KenCell telephone booth that was used to make calls before the introduction of mobile phones. [PHOTO: BEVERLYNE MUSILI/STANDARD]Indian-owned Airtel has lost in a landmark ruling delivered last Thursday relating to a 16-year-old taxation dispute. A result of the ruling delivered by Justice Francis Tuiyott means that Airtel, previously operating as Kencell, Celtel and Zain, will pay Sh531 million in back taxes relating to the acquisition of its operating licence in 2000. Kenya Revenue Authority (KRA) successfully petitioned the High Court that the price paid by Kencell for its operating licence was a capital expenditure as it enabled the firm acquire an asset. READ MOREThe local committee delivered its decision in March 2005 and agreed with Kencell’s contention that the licence fee was not a capital cost but a revenue expenditure – a cost that is incurred during the ordinary course of business.

Source: Standard Digital November 22, 2016 19:29 UTC