This archive report was first published on 15 May 2020.
On May 15, 2020, a tribunal delivered a significant ruling in a tax dispute between Dr Ndii and the Kenya Revenue Authority (KRA).
The tribunal found that KRA had erred in registering Dr Ndii without first notifying him, a requirement that is now a cornerstone of the taxman's approach.
According to the tribunal, KRA had accessed Dr Ndii's bank accounts to establish his financial dealings, a move that is now a key plank in the taxman's strategy to combat tax evasion.
Under the Tax Procedures Act, third parties such as banks, the motor vehicle registration unit, and property approval agency are compelled to share information with the taxman, failing which they face a fine of Sh1 million or a jail term of three years.
As the tribunal noted, 'there is no documentary evidence to show that the respondent (KRA) wrote to notify the appellant about the registration and cannot therefore retroactively demand for tax for the period under review.'
