Economy
KRA and Suba South MP settle Sh44m tax dispute
Friday March 01 2024
Suba South MP Caroli Omondi. FILE PHOTO | NMG
Suba South MP Caroli Omondi has settled a Sh44.7 million tax dispute with the Kenya Revenue Authority (KRA).
In an agreement on January 30, the taxman and Mr Omondi agreed to end the dispute after reviewing income tax assessments for the period 2017 from Sh44,782,594 to nil.
“By consent of the parties pursuant to the Alternative Dispute Resolution Agreement dated 30th January 2024, this appeal be and is hereby marked as settled,” the agreement adopted by the court on February 19 read.
The KRA said the legislator acquired a property worth Sh150 million in July 2018 through a company known as Bukeri Holdings Ltd, but the firm filed nil returns in 2018 and 2019.
His application challenging the demand was dismissed by the tax appeals tribunal in May last year.
The MP challenged the demand, arguing that KRA was claiming the money from him instead of the company yet it had its PIN.
His application was dismissed as the tribunal said he was given a chance to provide documents supporting the objection but did not do so.
The parties later pursued ADR and settled the matter. “That the income tax assessments herein for the period 2017 of Kshs 44,782,594 have been reviewed to nil,” the agreement said.
Evidence presented before the tribunal was that it came across a transaction from capital gains tax data indicating that Bukeri Holdings Ltd had acquired the property.
→ (email protected)