Eastleigh Mall group hits back at KRA in Sh386m tax claim
The Kenya Revenue Authority headquarters at Times Towers in Nairobi. PHOTO | FILE
Eastleigh Mall owners have termed a Sh386 million tax demand by the Kenya Revenue Authority (KRA) as malicious, claiming that they settled all outstanding dues between 2009 and 2014.
The shopping mall’s owners say in court filings that the KRA only demanded Sh1.2 million from them after auditing their books on several occasions between 2010 and 2014, which they settled fully.
The KRA and the Assets Recovery Authority (ARA) have obtained a court order barring Eastleigh Mall owners from selling or transferring its assets until an application to take control of the building to recover unpaid revenue has been determined.
But the mall’s owners now claim that they do not own the building that hosts the complex hence the two State agencies cannot be allowed to take over the premises to collect rental income to recover the Sh386 million claim.
The building, according to the firm, is owned by Yare Centre Limited which has leased it to Eastleigh Mall.
“Eastleigh Mall is not the registered owner of the property known as LR36/VII/56 and therefore the prayers in the suit cannot be granted and should be rejected.
“The temporary restraining orders granted should be discharged as the property leased by Eastleigh Mall to carry out its business does not entail proceeds of crime,” says Rizack Abdi Thahir, Eastleigh Mall general manager.
The ARA says in court papers that the mall owners have been transferring cash from Eastleigh Mall’s 18 bank accounts, leaving a paltry Sh626,000 by mid last week.
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