KENYA REVENUE AUTHORITY TO COLLECT 280M FROM TAX PAYER

KENYA REVENUE AUTHORITY TO COLLECT 280M FROM TAX PAYER. 

 

 

 

By Samuel Migele

 

 

 

Convex commodity Merchants Ltd (the taxpayer) has lost a three

year court battle to stop Kenya Revenue Authority (KRA) from

recovering Kshs. 280,586,727.94 in tax arrears.

 

 

The taxpayer had filed the suit seeking to stop KRA from enforcing

its tax demand on the basis that the same was illegal and excessive.

Convex Limited had further argued that KRA had frozen its various

bank accounts without affording it an opportunity to defend itself.

 

 

KRA, on the other hand defended its tax demand arguing that a

customs post clearance audit had revealed an undervaluation of the

sugar consignment imported by Convex Commodity Merchants Ltd

sometimes between May 2017 and August 2017.

 

 

The Court in its Judgment dated 7^th July 2021, ruled that before

filing a Judicial Review Application, an Applicant ought to exhaust

the available mechanisms for resolution of a particular dispute.

 

 

In dismissing the case, the Court found that the suit by the taxpayer

was premature as it was filed in total disregard of the provisions of

Tax Procedures Act that provide that an appeal against a tax

assessment ought to be determined by the Tax Appeal Tribunal first

before escalating it to the High Court.

 

 

Following the Judgment, KRA has been given the greenlight to

proceed and enforce collection of the demanded taxes.