I&M Bank #ticker:I&M has lost its court battle to stop the Kenya Revenue Authority (KRA) from demanding Sh238 million in VAT, corporate and withholding tax.
High Court judge George Odunga has instead ordered I&M to take its case against the KRA to the Tax Appeals Tribunal for determination.
The KRA initially demanded Sh434 million from I&M following a 2015 assessment of the lender’s books. I&M later filed an appeal against the demand at the Tax Appeals Tribunal.
The bank, in the suit, held that the KRA failed to respond to its objection to the 2015 tax assessment for more than 60 days, which, under the Kenyan law, means that the demand for unpaid levies had been waived.