It has now emerged that former Treasury Cabinet Secretary Henry Rotich failed to constitute a Tax Appeals Tribunal during of his first tenure in office, hence costing the Kenya Revenue Authority (KRA) Sh283 billion in terms of tax.
The taxman was unable to collect the said amount following the slow pace in which Rotich’s office and Judiciary handled the matter.
The Tribunal was to be established to resolve the disputes with the taxpayers but it never happened. The defaulters sought for redress at the nonexistent tribunal after the failure of the CS to convene the same.
Businesses as well as individuals affected kept on filing appeals before they realised that the quorum was not existent.
KRA commissioner-general James Mburu said that the taxpayers took advantage of the vacuum in power to defraud the government of billions meant for national financing.
KRA found itself torn between a rock and hard place after the failure of Rotich to form the Tribunal.
“Defaulters took advantage of this vacuum to lodge cases at the Tax Appeals Tribunal and we could only wait,” said Mburu, as quoted by Daily Nation.
Rotich was replaced after he was arraigned in court over the Kimwarer and Arror dam scandals.
President Uhuru Kenyatta replaced him with Labour Cabinet Secretary Ukur Yattani in the acting capacity.
His Principal Secretary Kamau Thugge was also sent packing.