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Economy

KRA fights capital gains tax hitch

The KRA seeks to collect a five per cent duty on net gains from activities like oil exploration. FILE PHOTO | NMG
The KRA seeks to collect a five per cent duty on net gains from activities like oil exploration. FILE PHOTO | NMG 

The Kenya Revenue Authority (KRA) wants the court to suspend an order stopping it from seeking capital gains tax following a verdict that declared its law unconstitutional.

In a suit filed Tuesday, the taxman sought the court’s intervention, arguing that it will be forced to delink the iTax payment module and the stamp duty, causing it great losses.

The tax demands that those selling property, mineral or oil exploration blocks will pay duty of five per cent on the net gain from the value of the transaction.

Through lawyer Pius Nyaga, the KRA claimed that it discarded the manual system of filing taxes when it rolled out the iTax payment module thus it does not have an alternative system to deploy to collect both stamp duty and the Capital Gains Tax.

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