Nairobi, Aug. 13 -- The Tax Appeals Tribunal has set aside a Sh780 million tax bill against solar home systems financier Bboxx Capital Kenya, ruling that Kenya Revenue Authority (KRA) failed to prove how it arrived at the disputed tax assessment.

However, the tribunal agreed with KRA that Bboxx's customers were not simply renting solar equipment and that the company's pay-as-you-go business model was subject to income tax on the resulting business income.

It found that customers were paying for the solar systems in instalments with the intention of eventually owning them after completing agreed payments, making the transactions hire-purchase deals rather than leases.

The tax dispute started after KRA treated Sh1.53 billion in the compa...