Taxman wants car owners to pay up pending a ruling

Taxman wants car owners to pay up pending a ruling

What you need to know:

  • Eleven vehicle owners, including the first owner of Mr Wamalwa’s car, Ms Grace Wairaki, and a company called Triple One Ltd, sued the tax commissioner-general last week.

  • High Court judge Isaac Lenaola on Friday stopped KRA from impounding the vehicles but asked the taxman to present a schedule of the amounts of the alleged unpaid tax.

  • Mr Wamalwa’s vehicle was among those presented for inspection for alleged fraudulent registration.

The Kenya Revenue Authority wants motorists who sued it to stop the seizure of their imported luxury vehicles to clear the taxes due pending the determination of their case.

The taxman says the Range Rover Vogue belonging to Water and Irrigation Cabinet Secretary Eugene Wamalwa that was among the high-end vehicles recently impounded in the tax evasion investigation has a tax debt of over Sh6.5 million.

Eleven vehicle owners, including the first owner of Mr Wamalwa’s car, Ms Grace Wairaki, and a company called Triple One Ltd, sued the tax commissioner-general last week.

In a document presented before court by the revenue authority on Wednesday showing the tax owed by the 11, Mr Wamalwa’s imported luxury car is listed as owing Sh6,595,344.83, the highest among the lot.

High Court judge Isaac Lenaola on Friday stopped KRA from impounding the vehicles but asked the taxman to present a schedule of the amounts of the alleged unpaid tax.

And despite pleas by the taxman on Wednesday, he extended the order until today, when parties in the case will record a consent with regards to settling the alleged debt.

Mr Wamalwa’s vehicle was among those presented for inspection for alleged fraudulent registration.

Then, his personal assistant indicated that the CS was the second owner and had paid the fees. He blamed KRA of failure to update its records.

The owed amount is however listed against the vehicle’s first owner.

According to Mr Owen Kwalia, a revenue authority manager in the investigation and enforcement department, in view of the outstanding taxes the motorists should be ordered to deposit in the taxman’s account security equivalent to the amount owing in order to stop their rights from being violated.

“It is contrary to public policy for the motor vehicle owners to shield themselves on allegations of infringement of constitutional rights to allow them to retain uncustomed goods contrary to the law,” said Mr Kwalia.

“Proving payment of proper duties, lawful importation or transfer of any goods is not a self-incriminating process but rather an obligation of the law.”

Asking the court to dismiss the car owners’ claims, he defended the commissioners as carrying out their duties properly and called on the Judiciary to aid the taxman to enforce its mandate of collecting revenue since it is key to economic development.

Apart from the vehicle belonging to Mr Wamalwa and another, among the 12, the other 10 were imported recently, he said.

While the motorists had claimed the notice of 24 hours that had been issued to them was too short and that they were ignored following the deadline, Mr Kwalia said the time limit was intentional since the vehicles could be moved outside the country if the period was extended.

“We had reasonable and justifiable suspicion to believe that the requisite import taxes were not paid,” Mr Kwalia said.