GovernanceTech

KRA Set To Collect KES 700Mn from Luthuli Avenue Electronics Shop

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Image courtesy Business Times Kenya

If you thought you were having a bad day, have some remorse, if you will, for this dealership. According to Business Daily, an electronic dealer based at Nairobi’s Luthuli Avenue (Kenya’s electronics lane*) will have to pay a hefty fine to the Kenya Revenue Authority’s (KRA) due to claims of undeclared tax.

KRA Visit Luthuli Avenue

The Tax Appeals Tribunal dismissed its objection to KRA’s assessment and levied KES 700 million from the dealership.

Digital Box ltd deals in buying and selling of electronics on Luthuli Avenue. They said that KRA officers raided their premises in February 2017 on Luthuli Avenue as well as one of the directors’ home in Parklands.

Now a four-man tribunal ruled that they failed to prove that the Commissioner of Domestic tax used unreasonable assessment to arrive at the amount. Digital Box ltd is set to pay KES 700,584,224.

Here’s what the Tribunal had to say:

“The Tribunal is of the view that the Appellant (Digital Box ltd) did not discharge its burden of proof in showing that the Respondent (KRA) used extraneous considerations and documents other than those prescribed by the law,” the Tribunal chaired by Catherine Mutava ruled.

However, they disputed saying the taxman had failed to consider the costs of the purchases for certain years.

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