KRA cuts ex-City Hall finance chief’s tax bill to Sh262m

Kenya Revenue Authority (KRA) has cut its demand for unpaid taxes from former City Hall finance chief Jimmy Kiamba to Sh262 million following assessments on his vast estate.

KRA says in court documents that it has reduced its earlier claim of Sh414 million from Mr Kiamba for the period between 2007 and 2014 as it prepares to use its alternative dispute resolution (ADR) mechanisms to resolve the standoff with the ex-City Hall accountant.

Justice Fred Ochieng last month ordered the taxman to resolve its dispute with Mr Kiamba using ADR mechanisms, but the taxman instead ordered that its tribunal handles the case.

Juliet Kamande, the head of KRA’s corporate tax department, says she had not been made aware of the judge’s ruling at the time she wrote to Mr Kiamba informing him that the Tax Appeals Tribunal would handle his case.

“The current tax liability of the respondent is Sh262 million. I have now read and understood the court’s ruling dated January 20, 2016 and I confirm that the KRA shall be ready to abide by this court’s direction on ADR proposal,” said Ms Kamande.

KRA last year obtained court orders freezing Mr Kiamba’s 10 bank accounts in a bid to secure its tax claims. The 10 bank accounts currently hold Sh120 million.

Five of the accounts are with CfC Stanbic Bank while two others are held at the Co-operative Bank. Mr Kiamba also operates accounts with Standard Chartered Bank, Equity Bank and Gulf African Bank.

READ: City Hall official who lives like a king on Sh85,000 pay

Justice Ochieng meanwhile ordered the taxman to allow Mr Kiamba to access Sh4 million to cater for himself and his family.

“In my considered opinion it is only fair and just to enable the taxpayer (Mr Kiamba) to have some income to live on pending the determination of this court and the Tax Appeals Tribunal,” the judge held.

KRA sued Mr Kiamba in June last year accusing him of failing to fully declare and pay taxes in the past eight years despite earning more than Sh1 billion.

The tax authority suspects that Mr Kiamba kept his earnings secret to avoid remitting taxes.

Mr Kiamba is seeking to unfreeze his accounts as the case continues but KRA holds that the cash is the only asset it can freeze as all his other property is charged to Equity Bank for a Sh180 million mortgage.

Ms Kamande holds that Mr Kiamba has failed to provide supporting documents for the taxes he claims to have paid, which has made it difficult to resolve the standoff.

Mr Kiamba’s estate includes two maisonettes in South C, a plush town house in Kileleshwa, four apartments in Kilimani and eight plots in Muthaiga, Mavoko and Machakos. He also owns six cars.