Mombasa Governor Hassan Joho at a past event. [Photo/ nation.co.ke]
A case in which the Kenya Revenue Authority (KRA) is demanding Sh90 million in taxes from a firm owned by Mombasa Governor Hassan Joho will be heard in September.
Judge Eric Ogola directed KRA and Portside Freight Terminal Ltd to file and serve their submissions within two weeks.The case was heard on Thursday but was struck out of the case file list and parties will now highlight their submissions on September 18.Justice Ogola had three months ago barred KRA from demanding or issuing any notices for the taxes said to be owed until the determination of a case filed by Portside Freight Terminal Ltd. Joho’s company had been allowed to carry on with operations as it applied orders against the tax body.The freight company, which says it does not admit the Sh90 million taxes allegedly owed wants KRA barred from issuing notices between 2008 and 2011 or any years thereafter.Also, it wants KRA stopped from issuing the notices to either its directors, shareholders bankers or its creditors pursuant to a letter by KRA dated February 3.Through an application filed in court, Portside said in a February 3 letter addressed to its managing director, KRA demanded various tax sums as tax due for the four years.Portside argues that where a tax payer has not paid tax on its due date, after assessment, then the Tax Procedure Act, 2015 comes into operation. Portside is also seeking for an order compelling KRA to follow the law as clearly spelt out in the Act in matters to do with assessment and recovery of tax and related matters as by law determined.KRA on its part said the freight firm’s total tax liability amounts to Sh90 million, due from the last day of the fourth month after the end of every year of income or the company’s accounting period.Through Jesse Kamau who is a supervisor at its Investigations and Enforcement Department, KRA said its actions are premised on the provisions of tax statute.“For avoidance of doubt, the respondents avers that its actions of demanding Sh90 million are independent of any interactions the parties herein might have in the past suits,” said Kamau, as quoted by Business Daily.