Ojienda wants KRA de­ci­sion on ‘Sh443m tax ar­rears’ quashed

On Oc­to­ber 5, lawyer ob­tained tem­po­rary or­ders bar­ring the tax agency from tak­ing any ac­tion against him

The Star (Kenya) - - Politics Judiciary - CA­ROLE MAINA @MainaCa­role

Lawyer Tom Ojienda is fight­ing to block Kenya Rev­enue Au­thor­ity from re­cov­er­ing Sh443 mil­lion in al­leged tax ar­rears.

On Oc­to­ber 5, he ob­tained tem­po­rary or­ders bar­ring KRA from tak­ing any ac­tion against him un­til a suit he filed is con­cluded.

Ojienda ac­cused the tax­man of un­fair­ness. KRA, in a let­ter dated June 7, de­manded pay­ment of Sh443,631,900 from Ojienda as to­tal tax due to it for 2009-16. But the lawyer says the claim is il­le­gal and he should not be made to pay. In court doc­u­ments, Ojienda says KRA has summed up all the money he has re­ceived since 2009.

He says they in­clude un­paid bills, his clients’ money, pro­ceeds from per­sonal ac­counts to which he was paid salaries and other al­lowances. Ojienda says KRA treated the sum as his net tax­able in­come.

He ac­cuses the tax­man of un­law­fully sub­ject­ing his four bank ac­counts — three held at Bar­clays and one at Stan­dard Char­tered Bank — to tax­a­tion, which, he says, is in vi­o­la­tion of his fun­da­men­tal rights.

“I re­ceive and keep clients’ money as statu­tory obli­ga­tion and that money can­not be sub­jected to tax­a­tion,” Ojienda said.

He said it is un­fair and un­rea­son­able for KRA to seek claims on sums banked at his per­sonal ac­count.

Ojienda says it is un­fair that he is re­quired to pro­vide com­mu­ni­ca­tion and doc­u­ments be­tween him and his clients, which were cov­ered by ad­vo­cate-client priv­i­lege.

He says it was wrong for KRA to is­sue an amended as­sess­ment dated Septem­ber 5, pur­port­ing to as­sess a to­tal of Sh378 mil­lion as tax dues and payable for 2011-16, with­out giv­ing him a chance to be heard and to pro­duce sup­port­ing doc­u­ments.

Newspapers in English

Newspapers from Kenya

© PressReader. All rights reserved.