Phar­ma­ceu­ti­cal files case over Sh44m tax

The Star (Kenya) - - News - CA­ROLE MAINA @MainaCa­role

A phar­ma­ceu­ti­cal firm has moved to court to stop the Kenya Rev­enue Author­ity from de­mand­ing more than Sh44 mil­lion slapped on it for fail­ure to re­mit tax be­tween 2008 and 2011.

Lords Health­Care Lim­ited in its suit filed un­der a cer­tifi­cate of urgency at the High Court said the de­mand by the taxman was not only il­le­gal, but in con­tra­ven­tion of the law.

Through the law firm of Ki­mondo, Ga­choka and Com­pany, the firm said the KRA pro­ce­du­rally wrote let­ters to its banks de­mand­ing they re­mit Sh44,897,218 with­out fol­low­ing the law.

“KRA has is­sued an agency no­tice to its banks at NIC, Com­mer­cial Bank and Prime Bank re­quir­ing the said agents to re­mit to it the monies,” the firm said.

The firm says the is­suance of the no­tices to the bank are un­pro­ce­du­ral and marred with bad faith. It said some­times in 2016, KRA said that it had car­ried out in­ves­ti­ga­tions and un­cov­ered un­paid cor­po­ra­tion tax amount­ing to Sh44,897, 218.

The in­ves­ti­ga­tions fur­ther noted that the com­pany had with­held tax to­talling Sh256,053 for 2009, 2010, 2011, and 2012.

But the Lords Health­Care says the al­le­ga­tions are not true, and that it has been fil­ing its re­turns and pay­ing taxes as re­quired.

“They have is­sued tax claim with­out tak­ing into con­sid­er­a­tions the pay­ment of Sh2,000,000 made by the ap­pli­cant on May 27, 2016, and pre­vi­ous over­pay­ments for a sum of Sh 4,300,000 made be­tween 1997 to 2007, which is un­rea­son­able,” says Lords Health­care.

The firm fur­ther ac­cused the taxman of fail­ing to give it time to re­spond to the ac­cu­sa­tions, and in­stead rush­ing to its banks. It says it will stand to suf­fer grave harm and prej­u­dice.

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