@BusinessDaily

Court bars KRA from seizing property over unpaid taxes

1 weeks ago, 13:57

By: Galgallo Fayo

The High Court has declared unconstitutional the law empowering the Kenya Revenue Authority to search goods and documents from taxpayers suspected to have evaded taxes.

Justice George Odunga Wednesday ruled that Section 44 (1) and (2), section 60 (1) and (3) of Tax Procedures Act, 2015 violates Article 31 (b) of Constitution, which guarantees "right not to have their possessions seized".

The judge also declared unconstitutional section 59 (4) of the Act which had waived the rights of individuals or organisations who are bound by contractual duty of confidentiality.

The decision are contained in a ruling delivered in case filed against KRA by former Nairobi County Secretary Robert Ayisi who contested the decision by taxman to arrest him after he allegedly failed to produce documents relating to legal fees paid to lawyer Tom Ojienda.

“I declare that the sections 44 (1) and (2), 60(1) and (3) and 59(4) of Tax Procedures Act, 2015 are unconstitutional and are invalid and are accordingly null and void,” ordered Justice Odunga.

Further action

He directed deputy Registrar of the High Court to serve the Judgment on the office of the Attorney-General for further action.

Mr Ayisi, who had claimed that his rights was infringed when he was briefly detained by KRA officers, also got reprieve as the judge found that his right to be treated with dignity was infringed.

For their actions, KRA was ordered to pay him damages of Sh2 million for violations of his rights. The taxman will also shoulder the legal cost incurred by Mr Ayisi.

Mr Ayisi Amoved to court in 2016 seeking to bar KRA from arresting him or demanding that he produce the documents in relation to the legal fees paid by the city government to Prof Ojienda, whom the taxman said was under investigations for under declaring earnings.


Read More


Category: business news corporate opinion lifestyle economy markets

Suggested

11 hours ago, 07:33
@DailyNation - By: Lucas Barasa
Authority in bid to speed up return of cargo containers

Shippers claim they have incurred millions of shillings in demurrage charges as a result of delay. ...

Category: business news topnews
11 hours ago, 07:33
@BusinessDaily - By: Lucas Barasa
Authority in bid to speed up return of cargo containers

Shippers claim they have incurred millions of shillings in demurrage charges as a result of delay. ...

Category: business economy news lifestyle opinion corporate markets
1 day ago, 11:48
@BusinessDaily - By: Reuters
Kenya moves to regulate fintech-fuelled lending craze

Key aim is to ensure that providers treat retail customers fairly ...

Category: business news corporate lifestyle economy markets opinion
12 hours ago, 06:27
@DailyNation - By: Bonface Otieno
Ex-Kenya Power boss shortlisted for top SRC job

Also short-listed are Fred Abednego Odhiambo, Okuku Nakitari Humphrey, Simeon Pkiyach Pkatey, Irene Wangui Gikemi, Samuel Kibati Osoro, Ambassador  Ephraim W.Ngare, Lyn Cherop Mangich, Dr Jane ...

Category: topnews news business
12 hours ago, 06:27
@BusinessDaily - By: Bonface Otieno
Ex-Kenya Power boss shortlisted for top SRC job

Also short-listed are Fred Abednego Odhiambo, Okuku Nakitari Humphrey, Simeon Pkiyach Pkatey, Irene Wangui Gikemi, Samuel Kibati Osoro, Ambassador  Ephraim W.Ngare, Lyn Cherop Mangich, Dr Jane ...

Category: business economy news
8 hours ago, 10:24
@CapitalFMNews - By: Mark Kamau
Agriculture ministry signs $10bn line credit with Indian to mechanize farmers

NAIROBI, Kenya, May 26 - The Agriculture Ministry and the Indian government has signed an agreement that will see the Ministry receive 10 billion US dollar Kenya breaking news | Kenya news today | ...

Category: business

@BusinessDaily

Court bars KRA from seizing property over unpaid taxes

1 weeks ago, 13:57

By: Galgallo Fayo

The High Court has declared unconstitutional the law empowering the Kenya Revenue Authority to search goods and documents from taxpayers suspected to have evaded taxes.

Justice George Odunga Wednesday ruled that Section 44 (1) and (2), section 60 (1) and (3) of Tax Procedures Act, 2015 violates Article 31 (b) of Constitution, which guarantees "right not to have their possessions seized".

The judge also declared unconstitutional section 59 (4) of the Act which had waived the rights of individuals or organisations who are bound by contractual duty of confidentiality.

The decision are contained in a ruling delivered in case filed against KRA by former Nairobi County Secretary Robert Ayisi who contested the decision by taxman to arrest him after he allegedly failed to produce documents relating to legal fees paid to lawyer Tom Ojienda.

“I declare that the sections 44 (1) and (2), 60(1) and (3) and 59(4) of Tax Procedures Act, 2015 are unconstitutional and are invalid and are accordingly null and void,” ordered Justice Odunga.

Further action

He directed deputy Registrar of the High Court to serve the Judgment on the office of the Attorney-General for further action.

Mr Ayisi, who had claimed that his rights was infringed when he was briefly detained by KRA officers, also got reprieve as the judge found that his right to be treated with dignity was infringed.

For their actions, KRA was ordered to pay him damages of Sh2 million for violations of his rights. The taxman will also shoulder the legal cost incurred by Mr Ayisi.

Mr Ayisi Amoved to court in 2016 seeking to bar KRA from arresting him or demanding that he produce the documents in relation to the legal fees paid by the city government to Prof Ojienda, whom the taxman said was under investigations for under declaring earnings.


Read More

Category: business news corporate opinion lifestyle economy markets

Suggested

11 hours ago, 07:33
@DailyNation - By: Lucas Barasa
Authority in bid to speed up return of cargo containers

Shippers claim they have incurred millions of shillings in demurrage charges as a result of delay. ...

Category: business news topnews
11 hours ago, 07:33
@BusinessDaily - By: Lucas Barasa
Authority in bid to speed up return of cargo containers

Shippers claim they have incurred millions of shillings in demurrage charges as a result of delay. ...

Category: business economy news lifestyle opinion corporate markets
1 day ago, 11:48
@BusinessDaily - By: Reuters
Kenya moves to regulate fintech-fuelled lending craze

Key aim is to ensure that providers treat retail customers fairly ...

Category: business news corporate lifestyle economy markets opinion
12 hours ago, 06:27
@DailyNation - By: Bonface Otieno
Ex-Kenya Power boss shortlisted for top SRC job

Also short-listed are Fred Abednego Odhiambo, Okuku Nakitari Humphrey, Simeon Pkiyach Pkatey, Irene Wangui Gikemi, Samuel Kibati Osoro, Ambassador  Ephraim W.Ngare, Lyn Cherop Mangich, Dr Jane ...

Category: topnews news business
12 hours ago, 06:27
@BusinessDaily - By: Bonface Otieno
Ex-Kenya Power boss shortlisted for top SRC job

Also short-listed are Fred Abednego Odhiambo, Okuku Nakitari Humphrey, Simeon Pkiyach Pkatey, Irene Wangui Gikemi, Samuel Kibati Osoro, Ambassador  Ephraim W.Ngare, Lyn Cherop Mangich, Dr Jane ...

Category: business economy news
8 hours ago, 10:24
@CapitalFMNews - By: Mark Kamau
Agriculture ministry signs $10bn line credit with Indian to mechanize farmers

NAIROBI, Kenya, May 26 - The Agriculture Ministry and the Indian government has signed an agreement that will see the Ministry receive 10 billion US dollar Kenya breaking news | Kenya news today | ...

Category: business
Our App