Kenyan tycoon Rupen Haria wins 3.2 million tax case over Harleys Limited share sale executed before CGT hike.
Court rules capital gains tax applies on sale date, not registration, safeguarding 2 million original payment.
Ruling may affect 85.1 million in similar pre-2023 deals, clarifying CGT timing for investors and authorities.
Kenyan pharmaceutical tycoon Rupen Mulchand Haria, former managing director of pharmaceutical distributor Harleys Limited, has won a Ksh417 million 3.2 million tax dispute against the Kenya Revenue Authority KRA over the sale of his shares.
The Kenya High Court overturned a Tax Appeals Tribunal ruling that had allowed KRA to demand additional capital gains tax CGT after Haria sold 5,910,000 Harleys Limited shares to Mauritius-based Westlands Heights Limited. on Dec. 30, 2022.
The transaction, valued at 40 million, is now set as a reference for other investors who face similar CGT assessments following changes in the law.