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KRA puts I&M Bank on the spot in Sh238m tax records dispute

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Kenya Revenue Authority headquarters at the Times Tower building in Nairobi. FILE PHOTO | NMG

The Kenya Revenue Authority (KRA) has maintained its Sh238 million claim against I&M Bank #ticker:I&M, arguing that the lender on three occasions failed to furnish it with crucial records that were important in determining the disputed tax amount.

The taxman says that I&M Bank had in several meetings agreed to provide documents that would have helped the taxman determine the Sh238 million demand for unpaid corporate tax, withholding tax and VAT.

I&M Bank has sued the KRA claiming that the commissioner of domestic taxes failed to rule on the lender’s objection to the demand within 60 days as required by law.

READ: I&M Bank gets court reprieve in Sh238m tax row with KRA

The lender adds that the failure to respond means that its objection was successful.

But the tax agency claims that I&M did not raise an objection, but simply wrote to the taxman seeking various inquiries, which cannot be translated to mean the lender raised a valid objection to the demand.