Burden of proof, Employee Reimbursements, Exemptions, Deemed Interest, Independent Contractor vs. Employee

The Tribunal found that the Appellant is liable to pay taxes in Kenya, as it had not provided sufficient evidence to support its claims of tax exemption. It also found that the Appellant had not provided sufficient evidence to justify its classification of certain payments as reimbursements for project-related costs, rather than consultancy fees. The Tribunal agreed with the Respondent that the individuals in question were employees, not independent consultants, and thus their income was subject to PAYE. Finally, it found that the Appellant had received loans from its holding company, not grants, and thus withholding tax on deemed interest should apply.