Why court backs KRA in fight against doubtful ‘nil tax’ filings

Kenyans queue to file their Kenya Revenue Authority (KRA) returns at South Rift Regional offices in Nakuru City on June 30, 2025.

Photo credit: File | Nation Media Group

A Nairobi restaurant has lost a bid to overturn a tax assessment after the High Court ruled that the law cannot assist a taxpayer, who files nil returns while failing to maintain statutory records to explain cash flows through its bank accounts.

The court dismissed an appeal by Avery Lounge Limited against the Commissioner of Domestic Taxes and upheld the Kenya Revenue Authority’s (KRA) use of bank deposits to reconstruct income.

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Note: The results are not exact but very close to the actual.