The Kenya Revenue Authority (KRA) has embarked on a fresh court battle against economist David Ndii over unpaid taxes.
KRA has issued a notice to the High Court appealing a decision by the Tax Appeal Tribunal which directed KRA to drop Ndii’s KSh 2.8 million tax evasion case dated back in 2017.
In December 2017, KRA issued a notice to Ndii demanding KSh 11, 395,591 arising from income tax estimated KSh 8.4 million and KSh 2.9 million arising from Value Added Tax (VAT).
The income tax dispute was resolved in an out of court settlement while the VAT claim was later reduced to KSh 2.8 million from KSh 2.9 million.
However, the tribunal later declared the VAT claim invalid on grounds that KRA used the wrong procedure to notify Ndii of his tax dues arguing that Ndii was not registered as a VAT agent and KRA listed him without notifying him first.
“The tribunal notes that 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,” the tribunal ruled.
Now, KRA is back to the High Court over dissatisfaction in the tribunal’s verdict.
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