The High Court in Nairobi has ruled in favour of KRA in a case filed by Stanley Mombo Amuti seeking to quash the decision of the Authority to close and freeze his accounts in enforcement of assessed taxes amounting to Kshs. 50,676,192. The taxpayer had also sought an order to prohibit the closure of his accounts or interference of any kind whatsoever by KRA.

Justice John M. Mativo on 4th November 2019 ruled in favour of KRA and dismissed with costs the case filed on 30th April 2018 by Staney Mombo Amuti.

The taxpayer did not challenge the assessment at the Tax Appeals Tribunal as required by the law. In its judgment the court held that the taxpayer has not exhausted the internal mechanisms for appeal or review within KRA and he had not demonstrated any exceptional circumstances to warrant exemption from internal processes for appeal or review;

KRA had followed the law before enforcement but the taxpayer did not exercise his right to appeal against the decision as required by The Tax Procedures Act, 2015. In the absence of an appeal, the court held, KRA took the enforcement action, a step which is expressly provided under the law.

The taxpayer failed to demonstrate that KRA had acted outside the law or to show non-compliance by KRA with procedures under the tax laws or any illegality in the actions taken by KRA in the enforcement action.

In dismissing the taxpayers case, the court held that KRA officers carried out the duties as required by the tax laws and therefore the enforcement action could not be faulted.

The KRA is now at liberty to recover the taxes of Kshs 50,676,192.00