KRA has won a case in which activists Okiya Omtatah was challenging its powers to inspect goods and records for tax liability.
Omtatah had challenged the constitutionality of Kenya Revenue Authority's investigation and enforcement powers provided under the Tax Procedures Act.
In a judgment delivered on February 20, Justice Weldon Korir ruled in favour of KRA saying the provisions are meant taxpayers don't fail to conduct self-assessment for tax purposes.
He said the powers can only be exercised when it is evident that a taxpayer is dishonest. The petition was filed on April 12, 2017.
Sections of the law allow that information received by KRA be admissible in civil and criminal cases, something Omtatah alleged constitutes a breach to the right to privacy.
KRA said the powers were necessary for the authority’s investigation and enforcement department to obtain essential information and take necessary actions to make a fair decision on the tax liability of taxpayers.
Korir dismissed the petition and said the right to privacy can be limited within the law and in the public interest. He said the privilege not to incriminate oneself cannot be used to get away with a crime.
“Tax Procedures Act has safeguards that ensures taxpayers receive fair administrative action from tax collector whenever the need arises to put a particular taxpayer through the administrative process,” Korir said.
The judge said it was upon taxpayers to do their part in properly complying with the law so no suspicion arises at KRA, which has the mandate to re-engage with them on the accuracy of their tax compliance.
If KRA acts arbitrarily while exercising those powers, any person aggrieved has recourse to the courts, Korir said.
edited by peter obuya
