Tax Appeals Tribunal rules in favour of KRA against Roshina Timber Mart Limited 

Tax Appeals Tribunal rules in favour of KRA against Roshina Timber Mart Limited  The Tax Appeals Tribunal (TAT) has ruled in favour of the Kenya Revenue Authority (KRA) in a case filed by Roshina Timber Mart Limited seeking orders to stop KRA from disallowing input VAT that was based on fictitious tax invoices from ghost traders, dubbed the “missing traders” scheme. The scheme was established to reduce tax liability without the taxpayer making taxable supplies or the supplier of the goods being captured on the tax invoices used to deduct input VAT. In its ruling delivered on 26th February 2020, the TAT held that the law places the burden of providing supporting documentation on the taxpayer and in the absence of such documentation; KRA is left with no option but to apply the law and assess the tax. The Tribunal further stated that failure to keep, retain or maintain records is an offence as stipulated under Section 93 of the Tax Procedures Act, 2015. This means that accepting the position advanced by Roshina Timber Mart Limited and allowing input VAT recovery would amount to aiding criminal conduct. The company argued that it had no obligation or responsibility to trace the supplier and  did  not  doubt  the  existence  of  suppliers  who  issued  it  with  the  invoices. The TAT also established that the VAT Act, 2013 stipulates that for input VAT to be allowable for deduction, it must have been incurred for the purpose of business or to make taxable supplies. KRA was therefore correct in seeking for additional documentation to prove that there were taxable supplies made to the company. The Tribunal went on to state that even if proof had been provided to show that the supplies took place, KRA was still within its power to establish whether the input VAT claimed by the company was incurred for business purposes in order to allow or disallow its recovery. The Tribunal further determined that KRA rightly demanded Corporation Tax from the impugned transactions with the phantom “missing traders”. KRA has previously experienced similar challenges where unscrupulous taxpayers who do not make taxable supplies use fictitious tax invoices to claim input VAT. The ruling is a boost to KRA in the fight against such schemes.  

Rice importers charged with Ksh1.5 billion Tax Evasion

Two businessmen of Pakistani Nationality were today charged before Mombasa Chief Magistrate Ms Edna Nyaloti for evading tax worth Ksh1.5 billion. The traders, Rahim Qasim and Rameez Gulzar Ali alongside their firm Jhulay Lal Commodities limited were found to have been importing rice into the country while deliberately failing to pay Income Tax. According to investigations, it was established that for the period covering January 2015 and December 2018, the suspects imported rice worth Ksh1.68 Billion. They sold the rice and banked the proceeds in their various companies’ accounts. The…

Nairobi Women’s Hospital responds to claims of extorting patients

The Nairobi Women’s Hospital (NWH) board has denied allegations that the hospital was admitting patients and holding them at the hospital. In a statement issued on January 3rd, 2020, the hospital’s Board of Directors said they’d noted with a lot of concern reports appearing in media suggesting that there is some “systematic approach by the hospital to unfairly generate revenue from patients.” “Although we don’t believe this is the case, and in fact, it is antithetical to our foundational principles, we take these allegations very seriously and are conducting an…

SONKO WOES PERSISTS AS ACTING COUNTY SECRETARY TAKES MANTLE

Acting county secretary leboo ole morintat during cabinet meeting Cityhall  photo/Samson wire By Samson wire Things have not been rosy at the county 047 after the county boss was barred by the courts from stepping into his office by the charges from DPP. The embattled Nairobi Governor Mike Sonko was arraigned in Court and Charged with Nineteen Counts by DPP over 357million corruption related cases. Operations at City hall has been slow which skeptics alluding to the fact there has been power vacuum created after The Charges bared Sonko from…

Soko Maize flour cleared by Kiambu County’s Public Health office

Kiambu County’s Public Health officials have cleared Soko Maize flour after official test results revealed that the product complied with allowable aflatoxin parameters. The clearance now means Soko Maize Meal can now trade freely in any outlets- e.g. Supermarkets, Distributors, Wholesalers, Retail shops, Hotels, Closed and open markets and Schools in the country. “Refer to the visit by Kiambu County Public Health Officials to your factory on 16th November 2019. Following the issuance of circular (KCG/CDH/VOL.1/39 dated 11th November 2019) to Sub County Public Health Officers (SCPHOs) – Kiambu County. As a way…

Leaders Condemn the Rising Trend of Violence against women

By Mourice Seretta A section of women leaders under the umbrella Women Agenda have condemned at the escalating trends of violence against women and children citing that in the recent past, the country has witnessed horrific murders including that of a mother and her two children in Laikipia. The women leaders also said they are also saddened by the dismembering of a lady in Bungoma, the rape and killing of a university student in Kasarani and many more incidences of femicide adding that they were deeply concerned at the rising…

Nairobi leaders want quick investigations over brutal church killings

Leaders in Nairobi are calling for quick investigations into the killing of two worshipers in a Nairobi Church. Led by Makadara MP George Aladwa ,the leaders want authorities to investigate and give satisfactory explanation on how armed robbers on Friday morning attacked Sakina Church in Nairobi’s Makongeni area. The robbers killed two worshippers who were in the church, an incident that has left the locals hell shocked. Aladwa wants the Makadara Sub County OCPD,Makongeni OCS and the DCIO to speed up investigations. ” We want answers as soon as possible…

City Hall unable to collect Sh300 billion from defaulters

The County has admitted to internal working challenges that have made it difficult to reign in on defaulters who owe it a staggering Sh300 billion in debts. This emerged on Wednesday during an enquiry by the Budget and Finance Commitee which was infomed that the county has only collected Sh627,511,966 million in the current financial year, from a target of Sh3.1billion. The amounts accumulate from rates, Single Business Permits,Fire,adverts,medicals,loading zones and way leaves. Officers from the Debt Collection Unit(dcu) headed by James Lempaka cited lack of operational tools like motor…

Building owners charged with three deaths

It is alleged that in early January 2011 and mid June 2015. At Casanova Village Starehe Nairobi County Kenya James Mwangi  and Teresia Mwangi . Jointly Constructed five story building without complying to laws relating to construction. Which caused the death of three innocent citizens after the building collapsed. The two accused pleaded not guilty to four counts of  manslaughter. Before Senior Principle Magistrate Peter Ooko at Milimani Law Court Nairobi County.

DADAAD REFUGEE TRAVELS TO KISMAYO SOMALI VIA WILSON AIRPORT BACK TO KENYA THROUGH JKIA

Controversy surrounding the movements of young alleged Somali refugee lady has seen Senior Magistrate Peter Ooko at Milimani Law Court Nairobi County Kenya, adjourned the sentencing of Dahir Aden Farhiyo in her 20s. It is alleged that Farhiyo used a Norway forged passport to gain entry in Kenya through JKIA where she was arrested while traveling back from Kismayo Somali to Kenya. The young lady through her Kenyan lawyer was unable to explain her mission back to Somali. She pleaded guilty to two counts of possessing a forged passport and…