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…

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…

City Hall to kick out papapotea con artists

The Nairobi County Government has cancelled licenses of street gambling artists over increased cases of fraud. The Trade department revoked the licenses following advice from the Security and Compliance Department. The county says the artists have been violating terms and conditions of their licenses and resorted to conning unsuspecting clients of their hard-earned cash. Inspectorate officers operating in and out of the CBD have subsequently been given directives to arrest and avail for identification all individuals operating as street gamblers, commonly known as PataPotea. City Hall Director for Security and…

Del Monte Kenya reaches amicable settlement with Competition Watchdog

Del Monte is contributing to achieving the Big Four Agenda, with its local cultivation, agro-processing, and value addition supporting manufacturing and food security in the country. Food processor Del Monte Kenya has reached an amicable settlement with Competition Authority of Kenya (CAK), after voluntarily amending a missing wording on the packaging of one of its products. The Thika based company in a statement, said that it had amended the wording on its packaging long before the Competition watchdog initiated their investigation, and this position was acknowledged by both parties leading…

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…

How anti Sonko Headlines were stage managed

By Correspondent On Wednesday at around 2:45pm, a famous ousted politician from the Nairobi County Assembly called four journalists based at and accredited to cover the county assembly. They were picked from assembly premises and preceded to a meeting where they met one senior official from EACC and other two lawyers with instructions to have some malicious story published. The story was already written and saved in flash-disks. They contacted their editors. But before that, other four journalists from electronic media (TV stations) arrived too. The scribes were taken, step…

Top city lawyers, police officers and former City Council officials on the spotlight over dubious land sale

Cartels in Sh280 million land scam unmasked Intrigues detailing how Proland Ltd Company entered into a deal with some officials at City Hall to irregularly award the firm Sh 280 million in a leasehold agreement have emerged. The company, which was blasted by Governor Mike Sonko on Wednesday for colluding with police officers and the judiciary to defraud the County, has been getting into questionable deals that have seen millions of money lost. It has now emerged that the company entered into leasehold sell agreement with the defunct Nairobi City…

Tax agents charged for aiding tax evasion

Three tax agents were today charged at a Mombasa court for aiding two companies to fraudulently reduce their Value Added Tax (VAT). The two were charged alongside directors of the two companies. The tax agents from Ogot &Associates, together with directors of Gaab Transporters Limited and Samumu Construction Services were charged with several counts in two separate cases. They appeared before Mombasa Senior Resident Magistrate Christine Ogweno. In one of the cases, the accused persons, Mohamed Moalin Mohamed, a director of Gaab Transporters Limited as well as Wilson Ogot Owera,…

KRA wins case against Dubai firm seeking to stop collection of KShs 2.3 billion tax debts

The High Court in Nairobi has ruled in favour of KRA in a case filed by a Dubai based company seeking orders to stop KRA from collecting KShs 2.3 billion in tax debts from its affiliate company registered and operating in Kenya. Justice Pauline Nyamweya on 23rd September 2019 ruled in favour of KRA and struck out a Judicial Review filed on 28th July 2018 by   United Arab Emirates registered firm, Suzan General Trading JLT. Suzan General Trading JLT had sought among others an order to stop KRA from enforcing the warrants…