Friday, March 29, 2024

Couple saved from paying KRA Sh. 9 billion, ordered to pay Sh. 10 million

Paleah Stores: A business couple in Embu has been spared from paying the Kenya Revenue Authority Sh. 9.3 billion in taxes. The couple has now been ordered to pay Sh. 10 million to KRA within the next two weeks.

This follows a ruling that was made by Justice David Majanja. In the ruling, Justice Majanja said that the order for payment of a substantial proportion of the tax demanded would lead to closure of the company. “Since the factual circumstances relating to the Appellant’s business are not in doubt and taking all the facts into account, an order for payment of a reasonable amount would be appropriate in the circumstances. It must also not lost to the parties that the appeal may be wholly or partially successful,” he said,” Justice Majanja ruled.

The couple had been ordered to pay Sh. 9.3 billion in taxes after losing a case challenging the tax demand at the Tax Appeals Tribunal.

Omosh: Please help! I’m broke and unable to pay rent, buy food

The couple’s business is known as Paleah Stores Ltd. It deals in building materials including sand, cement, iron sheets as well as food products including sugar and rice.

During the tribunal hearings, the taxman said that he got a tip off that the wholesaler was evading taxes. After investigations, the taxman found out that the wholesaler had evaded taxes amounting to billions of shillings between 2008 and 2014. The KRA then proceeded to issue a tax demand amounting to Sh. 1.3 billion for corporation tax and Sh. 7.89 billion for VAT, plus interest and penalties.

Paleah however disputed these figures, and argued that the tax due to KRA amounted to Sh. 34.8 million only. The trader also told the tribunal that KRA did not consider its Sh. 1.58 billion operating expenses. Paleah also argued that KRA refused to accept its gross profit rates based on sample actual invoices it provided. In response, KRA said that it had used information sourced from the trader’s bankers and suppliers to carry out its tax assessment. KRA said that bank and supplier details had revealed a major mismatch of stocks inventories,

Connect With Us

320,549FansLike
14,108FollowersFollow
8,436FollowersFollow
1,880SubscribersSubscribe

Latest Stories

Related Stories