Companies
Security firm fails in bid to quash taxman notices
Friday February 10 2023
Gillys Security and Investigations Services has failed to convince High Court judge Mugure Thande to force KRA to lift notices. FILE PHOTO | SHUTTERSTOCK
A private security firm has failed in its bid to quash agency notices issued by Kenya Revenue Authority (KRA) to its bankers in a bid to recover unpaid taxes amounting to Sh84.7 million.
Gillys Security and Investigations Services failed to convince High Court judge Mugure Thande to force KRA to lift the notices, which were issued in August 2019.
The firm had also accused KRA of harassing and intimidating its directors by criminalising the tax recovery process, by summoning them to appear before the Directorate of Criminal Investigations (DCI).
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The judge dismissed the petition saying a party who is aggrieved by a tax decision is required to first lodge an objection against such a decision with the Commissioner of Domestic taxes.
“In the end, I find that the Petitioners ought to have exhausted the remedies available under the Tax Procedures Act and the Tax Appeals Tribunal Act, before seeking judicial review of the administrative action complained about,” said the judge.
The judge added that the security firm did not demonstrate any exceptional circumstances for exemption from the obligation to exhaust the available remedies as required by law.
The company moved to the court stating that KRA issued the agency notices to nine institutions among them its clients and bankers, seeking to recover the money.
This is after noticing variances between the firm’s bank statements and the returns filed between 2013 and 2018. The directors wanted the court to quash the notices and stop the taxman from the alleged harassment.
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The security firm said it has always reiterated its commitment to settle any genuine tax arrears which may be due after a lawful assessment and determination.
