This archive report was first published on 30 June 2019.
On June 30, 2019, the Kenya Revenue Authority (KRA) was engaged in a tax dispute with two businessmen, Bipinchandra Raihod and Bhupendra Raihod, trading as Pennyways.
The KRA was seeking to recover Sh10 million in taxes from the businessmen, but a court order had temporarily suspended the agency's efforts to collect the debt.
The businessmen had obtained the court order, which was granted earlier in June 2019, after they claimed they were not aware of the basis for the KRA's demand for payment.
However, the KRA argued that the businessmen were aware of the debt and had failed to respond to demand notices sent by the agency.
According to the KRA, the businessmen had misrepresented the facts in dispute, and the court order was obtained through an attempt to circumvent due process of revenue collection.
Ms Asha Salim, of KRA's debt enforcement accounts management and refunds division, stated that the order in favour of the businessmen was prohibiting the agency from collecting customs duty.
The KRA had written to the bank directing it to pay Sh10 million from the accounts of the two businessmen, but Justice Eric Ogola issued a stay restraining the move.
