- The taxman was bidding to recover Sh2.5 billion taxes.
- According to the court documents, Wambui wrote to KRA on January 26, this year asking it to open the company’s i-tax portal.
Image: ENOS TECHE
An attempt by the Kenya Revenue Authority to preserve 13 bank accounts linked to businesswoman Mary Wambui has been declined by the High Court.
The taxman was bidding to recover Sh2.5 billion taxes.
Commercial judge Alfred Mabeya said there was no evidence to show that Wambui, her daughter Purity Mungai and their company Purma Holdings Limited wouldrefuse to pay or frustrate the collection.
Mabeya said the application by KRA discharged temporary orders he had issued in December last year in respect to the accounts, saying there were no reasonable grounds to the apprehension.
“There must be evidence to show that the taxpayer will refuse to pay or frustrate the collection either through delay, uncooperative behaviour or any other conduct that would prejudice KRA’s efforts,” he said.
KRA in its application sought an order for the preservation of funds and prohibiting the release or dealing with Sh2.5 billion held by five banks on behalf of Wambui and her company.
The preservation was to pend issuance of a tax assessment and recovery of taxes, or until further orders of the court. There was also an alternative prayer for security for the taxes.
KRA argued that it was likely Wambui and team may frustrate the recovery of the taxes if funds held by the banks were not preserved.
But Mabeya said KRA’s application failed to meet the required threshold and dismissed it.
He, however, ordered that a security of Sh50 million be preserved. The single security will apply to all the accounts and not each and singular one of them.
The judge further faulted KRA for its continued refusal to accept the payment of an admitted sum of Sh34 million from Wambui. This he said showed KRA was acting in bad faith.
“There has been admitted taxes amounting to over Sh34 million which Wambui and team have been begging KRA to allow them access to pay but KRA looked the other way. This cannot be said that the taxpayers are frustrating the recovery of taxes,” he said.
"If KRA has been unwilling to accept payment of the admitted sum why is it hell bent on freezing Wambui’s and the company’s accounts for taxes.”
According to the court documents, Wambui wrote to KRA on January 26, this year asking it to open the company’s I-tax portal.
This was to allow for the payment of the outstanding Sh34 million tax but KRA failed to respond.
They then filed a motion to compel the authority to open or reactivate the I-tax portal. The order was granted on February 4 by consent of the parties but still KRA failed .
Frustrated by KRA’s non-responsiveness Wambui and team lodged an application seeking to cite the authority’s commissioner general for contempt. That application is still pending.
(Edited by Tabnacha O)