KRA Revives Sh2.8 Million Tax Row with Economist David Ndii

Kenya Revenue Authority (KRA) has launched a fresh bid to recover nearly Sh3 million in unpaid taxes from controversial Kenyan economist David Ndii.

Business Daily reported on Friday, May 15th that KRA has notified the High Court of its intention to appeal a decision by the Tax Appeals Tribunal that ruled in favor of Ndii in the Sh2.8 million tax row. 

In December 2017, KRA demanded a total of Sh11.3 million from Ndii, being income tax totaling Sh8.4 million and an additional Sh2.9 million in value-added tax (VAT).

The parties settled the income tax dispute through an out-of-court agreement while the Sh2.9 million VAT claim was slashed to Sh2.8 million.

The Tax Appeals Tribunal later dismissed the Sh2.8 million VAT claim, ruling that KRA used the wrong procedure to notify Ndii of his tax dues. 

The tribunal said the taxman failed to notify Ndii through writing as required by the law and that it irregularly registered him as a VAT agent without informing him.

“The tribunal notes that there is no documentary evidence to show that the respondent (KRA) wrote to notify the appellant about the registration and cannot therefore retroactively demand for tax for the period under review,” it ruled.