FEATURED STORY

International Transport Firm Ordered To Pay KRA Ksh189 Million

Share
KRA's Times Tower Headquarters.
KRA's Times Tower Headquarters. [Photo/ Courtesy]
Share

An international company with business interest in the transport sector has been ordered to pay the Kenya Revenue Authority (KRA) taxes amounting to Ksh189,027,638.

In a judgment delivered on February 4, 2022, the Tax Appeals Tribunal (TAT) ordered Brick and Mortar Holdings Limited to pay the taxes after it failed to demonstrate gaps through the production of required evidence in KRA’s assessment of its tax obligations.

The taxes in demand by KRA comprise Corporation Tax, PAYE and VAT. The company, in its appeal, had alleged that KRA had failed to communicate its decision within the stipulated timelines, thus rendering its objection allowed by operation of the law. 

The Tribunal held that before the company could fault KRA’s decision based on tax assessment, it was incumbent upon it to demonstrate that it had complied with the stipulated timelines and provided the required documents that would enable KRA to consider and make a decision, something it had failed to do.

The Tribunal held that KRA vigorously and professionally engaged the company to reach an amicable solution on taxes demanded but the company failed to submit a valid objection to the tax assessment by KRA accompanied by documents which KRA would have relied on to arrive at a decision. 

The documents that ought to have been submitted by the company include the bank statements, signed audited accounts, sales and purchases ledgers. In the circumstances, the Tribunal held that it was not persuaded by the arguments advanced and rendered a decision in favour of KRA. 

Read: Three Charged With Forgery Of KRA VIP Parking Sticker

>>> KRA Impounds 230 Bags Of Sugar Smuggled From Uganda

Written by
FRANCIS MULI -

Editor and writer, Francis Muli has a passion for human interest stories. He holds a BSc in Communication and Journalism from Moi University and has worked for various organisations including Kenya Television Service. Email:[email protected]

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Follow Us

Related Articles
The Origins of Commercial Banking in Kenya
ECONOMYFEATURED STORY

The Origins of Commercial Banking in Kenya

Kenya is rich in type, number and sophistication of financial institutions. The...

What to Know about President Ruto’s Planned Nationwide Livestock Vaccination Programme
FEATURED STORYNEWS

What to Know about President Ruto’s Planned Nationwide Livestock Vaccination Programme

The nationwide livestock vaccination programme “against diseases,” planned for January next year,...

2024 SkyTeam Aviation Challenge
FEATURED STORY

Kenya Airways Shortlisted for 2024 SkyTeam Aviation Challenge

Kenya Airways (KQ) is the only African airline that has been shortlisted...

Affordable Housing Project
FEATURED STORY

Govt Puts Up For Sale 4,888 Affordable Housing Units: Here’s The Full List And How To Buy

The government has put up for sale 4,888 affordable housing units across...