Firm in Sh2.5bn tax row gets reprieve
Trucks at the port of Mombasa waiting to be loaded with sugar imported from Thailand last August. The Supreme Court has stopped the Kenya Revenue Authority from demanding more than Sh2.5 billion from a sugar importer. PHOTO | FILE | NATION MEDIA GROUP
What you need to know:
According to Mr Ngatia, the judges erred and wrongly interpreted Article 47 of the constitution.
In the intended appeal, the company argues that its right to fair trial was violated by Judges Alnashir Visram, Wanjiru Karanja and Martha Koome.
Darasa will be seeking from the Supreme Court orders compelling KRA to immediately process and release the sugar on duty-free basis.
The Supreme Court has stopped the Kenya Revenue Authority from demanding more than Sh2.5 billion from a sugar importer, who has accused the taxman of discrimination.
Five judges of the Supreme Court further stopped KRA from impounding the 40,000 metric tonnes of Brazilian brown sugar, imported by Darasa Investments Ltd. The sugar is being stored at the port of Mombasa and was shipped into the country on mv Iron Lady.
“In order to preserve the subject matter of this appeal and safeguard the integrity of such orders as this court may ultimately make, we hereby issue an order of injunction restraining the respondents from seizing, attaching or making demands with regard or relating to the appellant’s 40,000 metric tonnes of Brazilian brown sugar,” Chief Justice David Maraga, Deputy Chief Justice Philomena Mwilu, and Justices Mohamed Ibrahim, Smokin Wanjala and Isaac Lenaola ruled on Tuesday.
SUPREME COURT
Through lawyer Fred Ngatia, Darasa Investments rushed to the Supreme Court faulting the decision of three judges of the Court of Appeal which allowed KRA to demand the tax.
According to Mr Ngatia, the judges erred and wrongly interpreted Article 47 of the constitution. He held that the High Court and the Court of Appeal had no jurisdiction to determine whether a decision communicated by KRA and the Commissioner, Customs Services, was right or wrong.
In the intended appeal, the company argues that its right to fair trial was violated by Judges Alnashir Visram, Wanjiru Karanja and Martha Koome. Darasa will be seeking from the Supreme Court orders compelling KRA to immediately process and release the sugar on duty-free basis.
DUTY-FREE
Mr Ngatia said his client had a legitimate expectation that his consignment would be cleared duty-free, having been accepted and paid fees, levies and taxes amounting to Sh422 million.
The judges of the Court of Appeal had ruled that there was no evidence that KRA discriminated against the company.
“It is clear that the respondent examined shipping documents by Darasa Investments Ltd, inconsistencies were discovered, they were asked to shed light by the respondent, whether the decision by KRA was right or wrong, it was not to be discussed by the court.”
