A Tax Appeal Tribunal decision has allowed the Kenya Revenue Authority to collect Sh79 million from Standard Chartered Insurance Agency.
The tribunal upheld a decision of the Commissioner of Domestic Taxes and dismissed the agency’s appeal for failing to provide evidence to disprove KRA’s tax assessment.
The commissioner conducted a compliance check on the agency's income from 2015 to 2018. It communicated its findings through a letter dated May 17, 2019 but the agency did not respond.
The commissioner then issued a notice of assessment on July 11, 2019 with a tax demand of Sh87 million.
The agency objected to the entire assessment. The commissioner reviewed and revised the tax downwards to Sh79 million.
The agency was still dissatisfied with the decision and appealed to the Tax Tribunal.
The tribunal noted that the commissioner requested certain documents from the agency but they were never produced.
“Nothing could have been easier than the Agency providing the requested documentation either to the Commissioner or to the Tribunal during the proceedings to disprove the Commissioners tax decision,” said the Tribunal.
