Home Uncategorized CS Kuria saved from tax demand

CS Kuria saved from tax demand

0

CS Kuria saved from tax demand

 

CS  Kuria saved from  tax demand.

Moses Kuria, the cabinet secretary for trade and industry, has temporarily prevailed in his Sh119.6 million tax dispute with the Kenya Revenue Authority (KRA) when a tribunal ordered the taxman to reassess his liabilities.

 

When the CS was serving as the MP for Gatundu South, the taxman had issued a demand for Sh119.6 million for the years 2015 and 2019.

However, Mr. Kuria objected to the claim, claiming that it was excessive and that KRA was taxing reimbursements from affiliated companies as income or gains.

According to the industry ratio of 17.09 percent, the tribunal ordered the KRA to conduct a new tax assessment of Mr. Kuria’s tax liabilities resulting from bank deposits.

 

Following accusations that the former MP had misappropriated CDF funds from 2014 to 2019, the KRA claimed that it had conducted investigations into his tax affairs in the years 2020 and 2021.

 

The taxman got third-party information from Equity Bank, affiliated firms, and his clients in addition to compliance history from internal databases, copies of official records from the Registrar of firms, and copies of official records.

Later, in March 2021, it wrote to the CS to inform him of the undeclared income of Sh297.7 million, which resulted in a tax liability of Sh89.1 million, and to request payment.

 

When he disputed the assertion, the KRA raised the amount and increased its corporate tax demand to Sh119.6 million.

  • Moses Kuria defense

Then, Mr. Kuria filed a complaint with the tribunal, claiming that it was improper for the taxman to deduct all bank transfers from his related companies, which are payments made to the companies to cover operational costs.

 

“The respondent erred in law and fact in determining the reimbursements to the Appellant for operational costs advanced to the Appellant’s related companies are taxable income under Section 3(2)(a)(i) of the Income Tax Act,” he claimed.

 

Moses Kuria Saved

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here