BY SAM ALFAN.
Rights activist Okiya Omtatah has petitioned the High Court to quash irregular waiver granted by Kenya Revenue Authority to NIC Bank PLC and Commercial Bank of Africa ahead of its merger.
The activist wants the court to issue temporary order of injunction prohibiting KRA from giving effect to legal notice notice No. 112 of 26 June 2019 pending hearing and determination of the petition.
Omtatah urged the court to suspend the implementation of legal notice No. 112 of 26 June 2019 pending hearing and determination of the case.
According to the court documents, taxpayers will loose about Sh350 million tax revenue that would accrue to public coffers.
Omtatah revealed that the impugned waiver was granted on July 26, but was announced to the public on Sunday August 18.
He termed the move as irregular, unlawful, unconstitutional and null and void.
“Kenya will suffer great loss and damage since the tax waiver will be implemented”, Omtatah said.
He argued that the decision by KRA to exempt the instruments executed in respect of the transactions relating to the merger of NIC Group and CBA from tax should not be allowed to stand.
