The Kenya Revenue Authority (KRA) is to receive Ksh. 280 million in tax arrears from Convex Commodity Merchants after the company lost a three-year court battle.
Convex Commodity Merchants had pressed charges seeking to block KRA from recovering over Ksh. 280 million in taxes terming the demand illegal and unreasonable.
The court stated that before filing a Judicial Review Application, an application ought to exhaust the available mechanisms for the determination of a particular dispute in its ruling on July 7th this year.
Convex commodity Merchants Ltd claimed that the taxman had frozen its several bank accounts without any successful chance to protect itself from its accusations.
Further, KRA defended itself stating that a customs post-clearance audit had indicated an undervaluation of the
sugar consignment brought in by Convex Commodity Merchants Ltd between May 2017 and August 2017.
For the case, the Court found that the litigation by the Convex Commodity Merchants Ltd was premature as it was
petitioned in total disregard of the provisions of the Tax Procedures Act.
The Act provides that an appeal against a tax assessment has to be determined by the Tax Appeal Tribunal first before speeding it up to the High Court.
However, the court dismissed the case and allowed
KRA to go ahead and enforce collection of the demanded tax.