KRA wins Ksh1.18 billion case against Oxygen 8 EA
The Kenya Revenue Authority (KRA) is set to collect a tax worth Ksh.1.2 billion after the tax appeals tribunal dismissed an application by Oxygen 8 East Africa Limited seeking extension to file an appeal out of time.
KRA did an investigation audit against the firm for the period July 2015 – February 2019 and raised an assessment for Ksh.1,185,596,692 for withholding tax which was confirmed vide an objection decision on May 21, 2019.
Aggrieved by the decision of the taxman, Oxygen 8 filed a notice of appeal at the tax appeals tribunal but failed to file a memorandum of appeal within time.
It sought for extension of time to file its memorandum of appeal and statement of facts on the grounds that its Managing Director was absent from the country and instructions were received by its tax agents after the expiry of time.
KRA opposed the application on grounds that it was incompetent for failure to include a supporting affidavit and that the notice of appeal filed by Oxygen 8 EA was invalid.
Against this, the tax appeals tribunal delivered a ruling on September 11, 2019, wherein it ruled that the firm had failed to provide an affidavit stating the reasons for its inability to submit the requisite documents on time.
Further, the tax appeals tribunal ruled that the notice of appeal filed was invalid on the ground that the firm had acknowledged and expressed commitment to pay Ksh.986, 780, 277 but had not entered into an arrangement with the KRA to pay the sum at the time of lodging the notice of appeal.
To this end, the tax appeals tribunal ruled that KRA can now proceed to collect the outstanding taxes from Oxygen 8 East Africa Limited.