Mombasa Governor Ali Hassan Joho. [Photo/Citizentv]A Sh90 million in taxes is said to be owed to Kenya Revenue Authority by a freight firm associated with Mombasa governor Hassan Joho's family.
Lawyer Pius Nyaga for KRA told the court that Portside Freight Terminal Ltd firm was advised to remit the money.A letter by KRA, dated February 3 and addressed to the company’s managing director, was a notification that the freight firm owed taxes that were due and payable Mr Nyaga said.“The letter accorded the applicant an opportunity to seek clarification before the commission took any further action,” said Mr Nyaga in his submissions.He further told the court that the letter had notified the freight firm that it had failed to remit taxes for four years.“This empowered the commissioner to summon the applicant for an interview as provided under Section 61 of the Tax Procedures Act,” saiMr Nyaga further said in his submissions.Mr Nyaga told Justice Eric Ogola that the case ought to have been taken before the Tax Appeals Tribunal for determination.Through lawyer Paul Buti, the freight firm told the court that there is no way tax investigation findings can be equated to self-assessment of tax returns.“There were no self-assessment returns,” said Mr Buti adding that the matter cannot be dealt by a Tax Appeals Tribunal.In his submissions Mr Buti said, “If there was need for the matter to go to a tribunal, the letters (by KRA) should not have been written”.The freight firm which says it does not admit the Sh90 million taxes alleged owed wants KRA prohibited from issuing the notices for the years 2008 to 2011 or any years thereafter.It also wants the taxman prohibited from issuing the notices to either its directors, shareholders bankers or any of its creditors pursuant to the letter by KRA dated February 3.