Car owners sue taxman over seized vehicles

Some of the high-end vehicles on sale on May 16, 2016 at Prestige World Motors on Ngong Road in Nairobi that Kenya Revenue Authority officials are investigating for tax evasion. PHOTO | SALATON NJAU | NATION MEDIA GROUP

What you need to know:

  • Ms Grace Wambui Waraki and 10 others claimed that they only became aware of the unpaid tax enforcement deadline on Monday in a newspaper advertisement and by 11am on Tuesday, some of their vehicles had been seized.

The previous owner of a vehicle now belonging to Cabinet Secretary Eugene Wamalwa that was netted in a tax swoop on Thursday has sued the taxman.

The woman was among 11 vehicle owners who challenged the ongoing crackdown on tax fraud for imported vehicles.

The CS’s Range Rover Vogue was presented for inspection for being fraudulently registered.

Ms Grace Wambui Waraki and 10 others claimed that they only became aware of the unpaid tax enforcement deadline on Monday in a newspaper advertisement and by 11am on Tuesday, some of their vehicles had been seized.

They claimed their vehicles were the subject of unpaid tax due to the short notice and that their attempts to counter-check the alleged outstanding monies did not bear fruit since they were ignored at Kenya Revenue Authority offices.

Through lawyer Salim Mwadumbo, the owners sued the tax commissioner general as well as the enforcement and investigations commissioner.

“The sued parties issued a public notice in local dailies indicating that some motor vehicles owned by the petitioners have pending tax claims, in less than 24 hours, they were required to hand over ownership documents with a condition that failure to do so they would be liable to be prosecuted,” Mr Mwadumbo said.

They wanted the matter certified urgent and that orders be issued to stop the seizure of their property or interfering with their possessions in any way.

The other owners included Ms Florence Amboka, Mr Antonny Munyiri, Mr Patrick Nderitu, Ms Margaret Kiarie, Mr Edward Akuku, Mr Andrew Ngirici, Mr Omar Abubakar, Ms Nazra Chaudry, Mr Zachariah Abdillahi and Triple One Motors, a vehicle dealer.

The said the company’s director Daniel Shitagwa disclosed that it was his company which helped to import and acquire their vehicles.

He said the 10 have been using their vehicles locally in accordance with the law and only learnt recently of the tax claims.

The case will be heard Friday before the High Court.