The Tax Appeals Tribunal has given Kenya Revenue Authority (KRA) a nod to demand and collect Kshs1.2   billion in taxes from an international communications firm.
The tax tribunal at Nairobi dismissed an application by  Oxygen 8 East Africa Limited, seeking an extension to file an appeal out of time to contest the tax debt.Â
The tax dispute arises from KRA’s investigation audit against the firm for July 2015  to  February  2019  that raised an assessment of  Kshs.  1,185,596.692  for withholding tax.Â
The assessment was confirmed via an objection decision on 21st May, 2019.
Aggrieved by the KRA’s decision, Oxygen 8 East Africa Ltd filed a Notice of Appeal at the Tax Appeals Tribunal but failed to file a Memorandum of Appeal within time.
On 26th   June 2020, the firm  sought for extension of time to file its  Memorandum  of  Appeal  and Statement  of  Facts  on  the  grounds  that  its Managing   Director   was   absent   from   the   country   and  instructions  were received by its tax agents after the expiry of time.
 KRA opposed the Application on grounds that it was incompetent for failure to include a supporting affidavit and that the Notice of appeal filed by Oxygen 8 East Africa Ltd was invalid.
The Tribunal had on 11th September 2020 ruled that Oxygen 8 East Africa Ltd had failed to provide an affidavit stating the reasons for its inability to submit the requisite documents on time.
Further,  the Tribunal ruled that the Notice of Appeal filed was invalid on the ground that the firm had acknowledged and expressed commitment to pay Ksh986, 780, 277 but had not entered into an arrangement to pay the sum at the time of lodging the Notice of Appeal.Â
The Tribunal in its ruling stated that “…in its own admission, the applicant has an undisputed tax liability which is unpaid and it has not demonstrated to us that it has offered any payment plan for the same which is acceptable to the respondent,”
KRA shall apply the same decision to similar applications  for  extension  of time for future disputes affecting other taxpayers who do not submit the requisite documents in an application for extension of time.
