Landowners win as KRA’s advance capital gains tax stopped

Justice John Mativo of the High Court. FILE PHOTO | NMG

The Kenya Revenue Authority (KRA) has been barred from demanding capital gains tax payments from investors before completion of asset sales following a court ruling that quashed new regulations on the levy.

Justice John Mativo Tuesday ruled that paragraph 11A of the Eighth Schedule of the Income Tax Act infringes on the rights of both buyers and sellers by demanding that capital gains tax be paid before completion of asset sales.

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