BY ALFAN.
Keroche Breweries Limited has moved to court seeking to suspend the implementation of Tax Appeals Tribunal judgement delivered on March 9, compelling the company to pay 9 billion tax.
Keroche wants the court to temporarily suspend the implementation of the judgement that KRA is claiming shilling 9,116,835,985.00 billion pending hearing and determination of the application.
“An order of stay be issued staying the enforcement of the judgement of the Tax Appeals Tribunal delivered on March 9,2020 pending hearing and determination of the case.” Keroche urged.
Under certificate of urgency, Keroche Breweries wants KRA notice to Equity Bank dated March 11,2020 and any other agency notice issued on Keroche’s bankers and debtors be lifted and KRA stopped from taking any steps to collect any money pursuant to the said agency notices issued to the Keroche’s debtors.
The Naivasha based brewer argue that the Tax Appeal Tribunal did not read the entire decision as it only read the conclusion and the judgement has not been available to the company despite asking for it.
Keroche is apprehensive that Kenya Revenue Authority will issue other notices on its other bankers and may take additional enforcement action and the agency action will greatly jeopardize the company’s appeal and render it an academic exercise.
The company added that Keroche’s bankers are legally obligated to remit the sums set out in the agency notices unless there is a court order stopping such remission.
” The sums claimed as taxes are significant and are disputed. If KRA is allowed to recover these sums , the company’s operations will grind to a halt and it will cease existing as a going concern. ” Say’s Keroche.
The company has numerous contractual obligations with third parties and these obligations will not be met if KRA is allowed to enforce the judgement of the Tribunal. “This will expose the Keroche Breweries to suits for damages for breach of contracts.” Keroche claims.
Keroche Breweries has over 290 employees who derive their livelihood from its business and all these employees are staring at imminent loss of livelihood should KRA proceed to enforce the judgement of the Tribunal.
The company claims that the Tribunal judgement is wrong and legally untenable and it has good grounds to appeal.
It further added that the Tribunal erred in holding that Keroche’s forfeited wine product are categorised under the hermonised system (H.S) code Tarrif Heading 22.06 makes no reference to forfeited wine.
It further argues that the Tribunal erred in upholding an assessment beyond the statutory five year period contrary to section 29(5) of the tax procedure Act,2015.
The company also argue that the Tribunal erred in not finding that KRA based its VAT liability calculations on incorrect prices of Keroche products and failed to consider the technical reports from the government chemist and the Kenya Bureau of Standards confirming the correct chemical content of the Keroche products .
