Relief for United Millers in row with KRA

Times Tower, the headquarters of the Kenya Revenue Authority. FILE PHOTO |

What you need to know:

  • Judge rules that KRA was wrong to recover allegedly owed tax from the firm in a manner that suggested United Millers was winding up its businesses.

A manufacturer on Wednesday got a reprieve in a row with the taxman following a ruling by the High Court that quashed KRA’s decision to suspend customs declarations or clearance of goods belonging to United Millers Ltd.

Even though the company had sought to be awarded damages, Justice Weldon Korir declined to grant it, pointing out that KRA’s VAT claim of Sh48,631,169 from United does not affect that of the company’s refund of Sh78,339,222 from the taxman.

LIKE AN UNDERTAKER

The judge, however, ruled that KRA was wrong to recover allegedly owed tax from the firm in a manner that suggested United Millers was winding up its businesses.

“The taxman should not behave like an undertaker who has to finish up with one body and move to the next one; He should behave like a farmer who takes good care of his yields, taxpayers are the reason behind KRA’s existence and its officers should internalise this,” said Justice Korir.

United millers had moved to court in December 2013, claiming KRA was planning to issue agency notices to reclaim a disputed tax despite filing their returns showing they did not owe KRA any tax.