Portside Freight Terminal Ltd wants the KRA prohibited from issuing tax demands for the years 2008 to 2011 or any period thereafter.
The freight firm argues that where a taxpayer has not paid tax on its due date, after assessment, then the Tax Procedure Act, 2015 comes into operation.
The freight firm is also seeking an order to quash the decision by KRA demanding various amounts of money as tax due from it.
A freight firm associated with the family of Mombasa Governor Hassan Joho is seeking orders to prohibit the Kenya Revenue Authority (KRA) from demanding or issuing any notices for Sh90 million taxes allegedly owed.
Portside Freight Terminal Ltd, which says it does not admit the Sh90 million taxes allegedly owed, wants the KRA prohibited from issuing the notices for the years 2008 to 2011 or any period thereafter.
The firm also wants the taxman prohibited from issuing the notices to either of its directors, shareholders bankers or any of its creditors pursuant to a letter by the KRA dated February 3.
Through an application filed in court, the freight company said by a letter dated February 3 addressed to the managing director, the KRA demanded various sums as tax due for the four years.
The freight firm argues that where a taxpayer has not paid tax on its due date, after assessment, then the Tax Procedure Act, 2015 comes into operation.
“The respondent’s letter completely deprives the applicant (Portside) of all its benefits and remedies afforded to it in the Act through the whimsical decision contained in that letter,” reads part of the application.
According to the freight firm, the law does not allow any KRA officers to summon any of its directors for an interview and it is only where an offence is suspected to have been committed where summons can be made.
“The applicant contends that the respondents’ conduct as complained is intimidatory and geared towards arm twisting it not to pursue a claim against it (KRA) already filed in court,” the application read in part.
In his supporting affidavit filed in court, a director of the firm Mr Aboubakar Joho said by a letter dated February 6, KRA required him to appear before it the following day.
Mr Joho said he went to KRA when it (KRA) conceded that Portside Freight Terminals Ltd and himself had not committed any offence in terms of the Act pursuant to which the letter had been written.
“It is now apparent the respondent is vigorously pursuing some undisclosed ulterior concerns of its own against the applicant which has made the bringing of this application an imperative necessity,” said Mr Joho in his affidavit.
The freight firm is also seeking an order to quash the decision by KRA demanding various amounts of money as tax due from it.
It is also seeking for an order to compel KRA to follow the law as clearly spelt out in the Act in matters of assessment and recovery of tax and related matters as by law determined.
The case has been fixed for hearing on March 28.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
