Nairobi, Jan. 27 -- Pineapple grower Del Monte Kenya is staring at a Sh6.76 billion bill after a tax tribunal ruled that the company understated its local income by shifting profits offshore to related entities.

The Tax Appeals Tribunal found that the Thika-based fruit processor sold fresh and processed pineapples to a sister company abroad at prices that did not reflect the value created in Kenya and claimed interest deductions from a loan deal that favoured its parent firm.

The Kenya Revenue Authority (KRA) said deals shrank the income for Del Monte Kenya, resulting in reduced income tax collection.

In its rulings, the tribunal examined Del Monte Kenya's dealings with related overseas entities, including Switzerland-based Del Monte I...