BY SAM ALFAN.
The Supreme Court has declined to join Retail Trade Association of Kenya (RETRAK) in a case by Absa bank as the lender seeks to overturn a decision allowing Kenya Revenue Authority to demand withholding tax for royalties paid to credit card firms.
Supreme Court Judges Philomena Mwilu, Isaac Lenaola, Smokin Wanjala, Njoki Ndung’u and William Ouko dismissed the application by Retrak saying they did not show any prejudice they stand to suffer in case they do not join the case.
“We find that the applicant has failed to clearly identify the precise and specific interest it has in the matter. Its mandate is also peripheral to the issues in contestation and with respect, we do not see what issues of law or fact it will submit to court outside those already on record,” ruled supreme court Judges.
(RETRAK) through Rosalin Wambui Wamwiri, the Chief Executive Officer claimed to be the central administrative body that conveys the views of the applicant’s members to the Government and relevant bodies.
She claimed that RETRAK plays an important role in the scheme of service that involves payment of goods and services by way of debit and credit cards within the retail industry.
She further said RETRAK intends to guide the Court on the interpretation of Section 35 of the Income Tax Act and its import on imposing tax management and professional fees on interchange fees.
Commissioner of Domestic Taxes through Large Taxpayer’s Office (LTO) Philip Munyao opposed the application adding that they failed to comply with the provisions of Rule 24(1) of the Supreme Court Rules, 2020 by failing to demonstrate the personal interest in the matter nor any prejudice its stands to suffer if not joined.
The taxman added that whatever the applicant intends to bring to the petition is properly covered by the parties as the contested issues between the appellant and respondent are largely factual and uncontested.
