Nairobi, April 7 -- A tax tribunal has faulted the Kenya Revenue Authority (KRA) for misinterpreting data and erroneously treating projected average earnings as undeclared sales in a dispute over a Sh1.8 billion tax-loss claim by Transmara Sugar Company.

The Tax Appeals Tribunal said the flawed analysis denied the sugar firm tax reliefs and ordered the KRA to review the claims.

The dispute arose after Transmara Sugar sought to extend the carry-forward of Sh1.84 billion in losses beyond the statutory 10-year limit starting from 2011. The losses were incurred in 2011.

The KRA approved only Sh774.8 million and rejected the balance of Sh1.06 billion, citing alleged undeclared sales based on its data analysis.

But the tribunal set aside th...