Businesses & Financial News

Firm loses Sh1.4Billion tax tussle with KRA

The Tax Appeals Tribunal (the Tribunal) has dismissed an Appeal filed by Jhulay LAL Commodities Ltd on grounds that the firm had failed to prove that Kenya Revenue Authority’s (KRA) assessment was excessive.

Jhulay LAL’s principal activity is the wholesale and retail sale of rice sourced from Pakistan. Jhulay LAL Commodities Ltd appealed the decision of KRA contesting that the entire tax of Sh1, 456,433,604.00 demanded.

The main grounds of the appeal was that the Commissioner determined the taxable income on the basis of its gross banking against the basic accounting principles and tax law.

KRA successfully argued that it made the assessment after an investigation revealed several irregularities including unexplained bank deposits and that the sales of the rice exceeded the amounts imported.

The Tribunal reviewed the evidence as presented by both parties and held that KRA exercised its powers judiciously to make the decision based on the material before it.

The Tribunal held that the Jhulay LAL Commodities Ltd failed to prove that the assessment was excessive and dismissed the appeal.

 824 total views,  1 views today

Comments
Loading...
Social Media Auto Publish Powered By : XYZScripts.com