KRA blocked from taxing property service charges

NextGen Mall on Mombasa Road.

Photo credit: File | Nation Media Group

The Kenya Revenue Authority (KRA) has been blocked from demanding taxes on service charge collections by building and estate managers following a four-year dispute with Nextgen Mall Management Company.

The Tax Appeals Tribunal ruled that Nextgen Mall Management Company only handled funds as a conduit for unit owners to obtain basic upkeep services like grass cutting, security, bin cleaning, and management fees.

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