contractor to pay 259M taxes as suit is dismissed
By Samuel Migele
A Nairobi based Construction firm, Jipsy Civil and Building Contract
ors Limited is set to pay the Kenya Revenue Authority
(KRA) KShs. 259,319,773 of Value Added Tax (VAT). This is after Tax
Appeal Tribunal dismissed an appeal that the company had filed to
contest among others the liability for the VAT amount.
One of the issues for determination before the tribunal was the vali
dity of the appeal itself. KRA’s case was that the Company failed to cl
aim input VAT within timeline of six months prescribed in the VAT A
ct. Further, the Company had declared its returns but never paid the
declared taxes either when objecting or when filing the appeal. The
law requires that before filing a tax appeal, a person should pay the
admitted taxes. Jipsy Civil and Building Contractors Limited failed to
give explanations on the issue of invalidity of its appeal having not
paid the admitted taxes nor did it seek to validate the same at any p
oint by making payment of the self-assessed taxes.
The Tribunal found that the appeal was invalid as the admitted taxe
s had not been paid nor had the firm presented a payment plan as r
equired by the law. The appeal was dismissed and the assessment of
Kshs. 259,319773.47 was upheld.