This archive report was first published on 21 July 2021.
Kenya Revenue Authority (KRA) has been given the green light to collect Sh280 million in tax arrears from Convex Commodity Merchants Limited, following a three-year court battle.
The taxpayer had filed a suit seeking to stop KRA from enforcing its tax demand, arguing that it was illegal and excessive. However, the court ruled that the suit was premature and in disregard of the Tax Procedures Act.
The court found that the taxpayer should have first appealed the tax assessment to the Tax Appeal Tribunal before escalating it to the High Court. With this judgment, KRA can now proceed with enforcing the collection of the demanded taxes.
Convex Commodity Merchants Limited had imported sugar between May 2017 and August 2017, and a customs post-clearance audit revealed an undervaluation of the consignment.
