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KRA accuses Eastleigh Mall of making false tax returns

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The Kenya Revenue Authority has accused the Eastleigh Mall of making false tax returns. PHOTO | FILE

The Kenya Revenue Authority has accused the Eastleigh Mall of making false tax returns.
KRA officer Justus Kiuvu says in court papers that the mall had concealed its income to reduce its tax bill.
The taxman was responding to a petition filed by the mall owners seeking reversal of court orders allowing the Kenya Revenue Authority (KRA) to seize its property and freeze six bank accounts registered to the mall and 12 of its directors.
The taxman is demanding more than Sh386 million from the mall.
Mr Kiuvu says an inspection done on April 13 revealed the tax under-statements after which KRA informed the mall, which instead objected to the tax demands.
He says the mall acknowledged the validity of the tax demand by lodging its objections.
“Our findings on the investigations revealed that the mall has been involved in un-declaration of chargeable income and making false returns which are offences under Section 110 of the Income Tax law,” he says.
He disclosed there were two pending criminal cases touching on the matter, while requesting that no reprieve orders should be issued against the commissioner of investigation, finance and enforcement, income tax commissioner and KRA also listed as parties to the suit.
“There will be substantial loss to the government in terms of revenue if the sought for orders are issued to the directors of the mall because this would lift the freezing of their accounts as well as allow them to benefit from their illegal activities,” added Mr Kiuvi.
This story is corrected to remove inaccurate references to Eastleigh Supermarkets (Eastmatt) as published on Aug 24.