KRA to combat minimum tax ban portray

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Economic system

Monday September 20 2021


Instances Tower, the Kenya Earnings Authority offices. PHOTO | NMG

The Kenya Earnings Authority (KRA) will charm a court docket ruling that has barred it from collecting minimum tax from companies.

Mr Paul Matuku, the Commissioner for Lawful Services at KRA acknowledged Monday that the taxman disagrees with the findings of the Excessive Court and can rob an charm.

The taxman started collecting the minimum tax on the lag of one p.c of the unsuitable turnover in January following changes to the Profits Tax Act closing twelve months.

Nonetheless Excessive Court rob George Odunga, sitting in Machakos, on Monday barred it from collecting the tax after he dominated the law change unconstitutional.

“The Kenya Earnings Authority respectfully disagrees with the findings of the Court and can rob an charm to the Court of Entice challenge this finding. Here’s to develop obvious that KRA continues to uncover about and enhance on tax policies in portray to chop the tax burden whereas making certain that every citizen contributes their very most keen piece of tax,” acknowledged Mr Matuku in a assertion.

The charm marks KRA’s open up to establish in force the gathering of some Sh21 billion from companies within the twelve months ending June with a aim to hotfoot its earnings shortfalls.

In his judgment, Justice Odunga declared fraction 12D of the Profits Tax Act, which launched the minimum tax, unlawful.

The minimum tax used to be appropriate to companies no topic whether or no longer they develop a earnings or no longer.

Kitengela Bar Owners Association challenged it in a petition arguing that enforcement of the tax used to be unconstitutional and would damage their companies.

The petition used to be filed in opposition to the Nationwide Meeting, KRA and Legal expert-Total Paul Kihara Kariuki.

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