Use of alternative and indirect methods of assessments

Whether the KRA was justified in employing an alternative and indirect method of assessing the Appellants estimated tax liability.

The Tribunal held that where the Respondent is prompted to resort to an alternative method of determining the income and assessing the liability of a taxpayer, it has the enormous responsibility to act reasonably by exercising the best judgement informed by pragmatic and reasonable considerations that do not result in ridiculously high income margins.