Kenya Revenue Authority(KRA)

Tax tribunal backs KRA in Sh 74 million tax dispute against hotelier

The Tax Appeals Tribunal has ruled in favor of the Kenya Revenue Authority (KRA) in a case filed by hospitality firm .

M/S Kisii Safari Inns Ltd T/A Kaskazi Beach Hotel had challenged the collection of taxes amounting to Sh 74 million.

The Tribunal dismissed its application for extension of time to file an appeal out of time.

Court ruled that the firm had failed to file an appeal within the legal timelines and sought to have time extended in order to challenge the enforcement measures KRA initiated to collect the outstanding revenue.

KRA opposed the application on the ground that the taxes it sought to collect were based on the firm’s self-assessments.

KRA further argued that the hospitality firm had admitted owing the taxes demanded but had failed to make payments or present an agreeable payment plan as provided for under section 52 (2) of the Tax Procedures Act 2015.

While backing KRA’s argument, the tribunal held that it was unable to extend time for the taxpayer to file an appeal unless and until the taxpayer pays the undisputed taxes.

This means that KRA shall not allow taxpayers to file appeals on matters with admitted tax liabilities.

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