Court stops KRA from seizing vehicles in tax fraud
What you need to know:
- The judge said the orders are in effect on the condition that the KRA present to the vehicle owners and the court a schedule of the alleged amount of tax owed.
- Among those who sued was the previous owner of a Range Rover Vogue now belonging to Water and Irrigation Cabinet Secretary Eugene Wamalwa that was netted in the tax swoop.
The High Court has issued temporary orders barring Kenya Revenue Authority (KRA) commissioners from seizing 12 motor vehicles over unpaid tax.
Justice Isaac Lenaola issued the orders until Wednesday next week, when the matter will be mentioned again in court.
The judge said the orders are in effect on the condition that the KRA present to the vehicle owners and the court a schedule of the alleged amount of tax owed.
Eleven owners of 12 vehicles as well as Tripple One Motors Limited had sued the KRA on Thursday over the matter.
“An order restraining the sued parties from impounding, interfering with the motor owners’ possession, or quiet enjoyment of their cars is hereby allowed pending the hearing and determination of this case,” the judge said.
The vehicle owners were also asked to comply with the order and warned against acting contrary to the court's jurisdiction.
“I stand with KRA in this matter, but what usually happens when vehicles are seized is that they are parked somewhere and waste away, to save them in this situation is to ask the owners not to move the cars out of this jurisdiction and as for you, you can even track them, that is a balanced order for now,” he said.
Among those who sued was the previous owner of a Range Rover Vogue now belonging to Water and Irrigation Cabinet Secretary Eugene Wamalwa that was netted in the tax swoop.
The sport utility vehicle was presented for inspection, with the KRA saying it was fraudulently registered.
The vehicle had been registered as an Isuzu lorry. His Personal Assistant Kizito Temba said it was not the minister's fault that the vehicle had been registered fraudulently and import duty on it was not paid as he was only a second owner.
Grace Wambui Waraki, who was the initial owner of the Range Rover Vogue, together with 10 others claimed that their vehicles were subjects of unpaid tax due to a notice of less than 24 hours in local dailies just before the start of the crackdown.
Angella Mwadumbo, representing the vehicle owners, told the court that their attempts to countercheck the alleged outstanding taxes did not bear any fruit since they were ignored at the KRA offices and did not know how much was in debt.
They alleged that they only became aware of the unpaid tax enforcement deadline on May 16 through a newspaper advertisement and by 11am on May 17, some of their vehicles had been seized.
The KRA summoned the owners of 124 vehicles to present them for inspection at its Railways Club offices.
