TAX DISPUTE

KRA in court to stop reopening of Keroche order

On July 15, the High Court ordered KRA to open the Naivasha-based plant.

In Summary

•Even so, the tax body now argues that the High Court order contravenes the initial order where Keroche had been given a repayment schedule to settle its tax arrears until the next hearing date on September 22.

•On July 15,  the High Court ordered KRA to open the Naivasha-based plant.

KRA Commissioner General James Mburu
KRA Commissioner General James Mburu
Image: Courtesy

Kenya revenue authority has moved to High Court to stop order to reopen Keroche Breweries.

On July 15,  the High Court ordered KRA to open the Naivasha-based plant pending the hearing and determination of tax dispute of up to Sh957 million.

The decision issued on Friday was on the backdrop of Keroche and KRA’s return to the corridors of justice after the former failed to honour an earlier repayment plan to foot determined tax arrears.

Even so, the tax body now argues that the High Court order contravenes the initial order where Keroche had been given a repayment schedule to settle its tax arrears until the next hearing date on September 22.

“It is the Authority’s view that the case filed in Court by Keroche and the Orders sought go contrary to previous orders issued by the same Court and the consent agreements arrived at and signed by the two parties,”  KRA, Commissioner for Legal Services & Board Coordination,  Paul Matuku said in a statement on Tuesday.

KRA shut Keroche Breweries on May 15 after the brewer failed to honour a repayment plan that would have seen it settle Ksh.shillings across 24 months

The authority went ahead to issue agency notices to several banks against lending or giving any overdrafts to the brewer completely paralysing its operations.