The Kenya Revenue Authority (KRA) has requested the court to reject a legal challenge from CMC Di Ravenna-Kenya over a Sh333,220 VAT liability for the Itare Dam construction in Nakuru. KRA’s Domestic Taxes Department chief manager Patrick Chege argued in an affidavit that the company’s application constitutes an abuse of court procedures.
Chege stated the firm had not pursued enforcement of the tax demand since filing the tribunal, making the legal action unnecessary. The case is scheduled for hearing on March 20.
In December 2018, Judge Pauline Nyamweya suspended KRA’s June 19, 2018, decision requiring the company to pay the VAT. The firm had contended the dam project, funded by the government, qualifies for zero-rated supplies under the VAT Act 2013.
CMC Di Ravenna (Kenya) signed a Sh28.9 billion contract with the Rift Valley Water Services Board in 2015 to build the dam, which the company claims falls under public infrastructure exemptions.
