Court Upholds Sh20M Tax Fraud Demand By KRA Against Singapore Motors

A motor vehicle dealer has lost a petition seeking to quash a Sh20 million tax demand by the Kenya Revenue Authority (KRA).

Singapore Motors, which deals with imported cars from Japan suffered a blow after the High Court dismissed the petition.

The court found that the company failed to file tax returns as required by the law and did not pay taxes in the period stated by the taxman.

“The court has established that the Appellant failed in his obligation to file tax returns as stipulated under section 52B of the Income Tax Act. He also did not pay taxes during that period,” said the Judge while dismissing the application

KRA said it did a tax assessment of the company and issued a notice of Sh99,960,19 in a letter dated 24th April 2019. The amount included income tax, penalties and interest.

The company challenged the taxman’s decision before Tax Tribunal but the same was dismissed.

The Tax Tribunal upheld KRA’s decision a move that forced the company through its director Michael Ndichu Mburu to file an appeal before the High Court.