The Kenya Revenue Authority (KRA) has maintained its Sh238 million claim against I&M Bank #ticker:I&M, arguing that the lender on three occasions failed to furnish it with crucial records that were important in determining the disputed tax amount.
The taxman says that I&M Bank had in several meetings agreed to provide documents that would have helped the taxman determine the Sh238 million demand for unpaid corporate tax, withholding tax and VAT.
I&M Bank has sued the KRA claiming that the commissioner of domestic taxes failed to rule on the lender’s objection to the demand within 60 days as required by law.
The lender adds that the failure to respond means that its objection was successful.
But the tax agency claims that I&M did not raise an objection, but simply wrote to the taxman seeking various inquiries, which cannot be translated to mean the lender raised a valid objection to the demand.