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Economy

KRA appeals ruling allowing Nairobi County to sue in Sh1 billion tax row

Mr John Njiraini, the KRA commissioner- general. FILE PHOTO | NMG
Mr John Njiraini, the KRA commissioner- general. FILE PHOTO | NMG 

The Kenya Revenue Authority (KRA) has moved to the appellate court to challenge a recent ruling which allowed Nairobi County to commence contempt of court proceedings against its senior officers.

Nairobi County Government wants KRA’s John Njiraini, the KRA commissioner general and senior officer James Githii Mburu jailed for disobeying a court order.

The High Court had found the KRA to have been in contempt when it issued agency notices seeking to recover Sh1,017,393,208 unpaid tax from the county government despite a court order temporarily stopping such action until the case filed by the county government is heard and determined.

In its appeal, the KRA argues that the High Court judge failed to appreciate that the agency notices seeking to recover Sh1,017,393,208 was related to a period not covered by the order.

“The agency notices of April 13, 2017 for Sh1,017,393,208 were for the enforcement of tax debt covering a tax period and amounts other than the periods and amount which was covered under the court order of December 19, 2016,” the KRA says.

According to the taxman, the court order dated December 19, 2016 stopped them from enforcing the collection of the tax debt of Sh4,776,560,914 covering April 2013 to December 2015 and not for October 2016 to March 2017 whose tax liability is Sh1,017, 393,208.

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