Brookhouse International School has been ordered to pay Ksh140 million after reducing it’s school fees, requirements for a section of its clients.
According to a report dated Monday May 3, the institution was ordered to part with millions as tax owed to Kenya Revenue Authority (KRA).
The institution had reportedly subsidized tuition fees it offered to its staff members between 2010 and 2014.
After a review carried by the taxman and whose revelations were made public in 2017, KRA claimed that the tax arrears amounted to as much as Ksh186.6 million.
The authority further disclosed that the arrears involved Pay As You Earn (PAYE), corporate tax and withholding tax.
In its objecting, the management of the elite institution, however, argued that the law was so complex on how to value non-cash benefits companies according to their staff members.
They further disputed the taxman’s computation of the benefits especially PAYE arguing that there was no clear legislation on school fees taxation.
The institution also explained that it charged its teachers 15 per cent of the applicable school fees.
After listening to the arguments, Justice Justice David Majanja ruled that the subsidised facility was taxable and that the management have an obligation to collect PAYE.
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