This archive report was first published on 9 October 2019.
Kenya Revenue Authority (KRA) has taken a significant step in its long-standing dispute with businessman Kamlesh Pattni, attaching assets worth Sh2.2 billion in tax arrears. The move comes after a series of court rulings in favour of KRA.
According to KRA, the assets were attached from Suzan Duty Free, a company linked to Pattni's Diplomatic Duty Free Ltd. The taxman is seeking to recover Sh2,207,884,743 from Pattni's company, including unpaid principal taxes of Sh748,427,763 and interest of Sh1,459,456,980.
Pattni's company, Suzan Duty Free, had sought to stop KRA from enforcing warrants and distress notices issued in 2018. However, the High Court in Nairobi ruled in favour of KRA on Monday, dismissing the Judicial Review filed by Suzan General Trading Jtl, the Dubai-registered company.
Justice Pauline Nyamweya struck out the Judicial Review on July 28, 2018, paving the way for KRA to attach Pattni's assets. The company had argued that the debts owed to KRA were by Diplomatic Duty Free Ltd, which had ceased to exist.
However, KRA maintained that the debts were owed by Suzan Duty Free, and the court agreed. The seizure of assets marks a significant turning point in the protracted battle between Pattni and KRA, which dates back to 2013.
