Jacaranda hotel.[Photo/SoftKenya]
The Kenya Revenue Authority is in a legal battle with a four-star city hotel over a Sh95 million tax arrears demand.
Jacaranda Hotel moved to the High Court with the help of lawyer Milly Odari arguing KRA had refused to take its deal to pay the tax arrears in installments.
The court heard that auctioneers were sent to get the money on behalf of KRA and moved in on January 12 to reinforce their demand. The hotel had paid Sh15 million and had floated a proposal to pay the balance in 12 to 18 monthly installments.
KRA had informed them that they should offset Sh50 million before yesterday and pay the remainder in three months. The Westlands-based hotel, owned by the family of former powerful minister Njenga Karume, agreed to pay Sh35 million in a week and pay the balance in a year.
Lawyer Odari told the court that the hotel was struggling financially therefore could not pay all its taxes and still carry on its business.
She showcased orders given by a different court in 2015 blocking Karume’s estate trustees from selling of assets to pay debts accrued over time are hurting its operations.
The hotel’s acting CEO Charles Kimani, in his supporting affidavit, said KRA was asking for more than what had been tabulated.
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