Eric­s­son set­tles Sh800m tax dis­pute with KRA

Business Daily (Kenya) - - CORPORATE NEWS - Brian Wa­suna bwa­suna@ke.na­tion­media.com

Swedish elec­tron­ics gi­ant Eric­s­son has reached an outof-court deal with the Kenya Rev­enue Author­ity (KRA) fol­low­ing a dis­pute over Sh800 mil­lion in taxes.

Eric­s­son on Tues­day asked Jus­tice Grace Nzioka to mark the suit it had filed against KRA as set­tled but did not re­veal de­tails of the deal.

The firm had sued KRA to stop it from is­su­ing agency no­tices to Bar­clays Bank and Stan­dard Char­tered where Eric­s­son has ac­counts.

KRA had taken mea­sures to re­cover Sh800 mil­lion from Eric­s­son after the Tax Ap­peals Tri­bunal dis­missed an ob­jec­tion raised by the firm.

The amount was raised by KRA in re­spect of taxes due for the years 2008 to 2010.

Eric­s­son had held that al­low­ing KRA to at­tach the amount in its two bank ac­counts would ground its op­er­a­tions. Eric­s­son had in court claimed that as at

The amount was raised by KRA in re­spect of taxes due for the years 2008 to 2010 ...the re­spon­dent de­manded taxes in re­spect of trans­ac­tions done over ive years... yet Eric­s­son was not re­quired to keep records after ive years.” LAWYER | FOR ERIC­S­SON

June 2014, it had over­paid tax by Sh1.2 bil­lion which KRA had failed to ac­knowl­edge.

The firm claimed that the tax­man’s de­mand was un­law­ful.

“The KRA’S as­sess­ment dated De­cem­ber 30, 2015, was un­law­ful as the re­spon­dent de­manded taxes in re­spect of trans­ac­tions done over five years from the date of de­mand yet Eric­s­son was not re­quired to keep records after five years,” the firm said.

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