The owners of Carrefour supermarket have sued Kenya Revenue Authority over Sh500 million tax demand. In 2018, KRA introduced value added tax auto assessment system to detect inconsistencies between purchases and sales invoices declared. The total was Sh523,009,184Majid Al Futtaim immediately filed its objection to the tax demand and invited KRA to conduct a physical assessment. Secondly, it said the inconsistency between the input tax claimed by KRA and the output tax declared by the supplier does not necessarily imply noncompliance or tax leakage. Also sought is an order to compel KRA to credit the supermarket owner’s iTax ledger with Sh583,795,501 for the input tax claimed.

Source: The Star January 05, 2021 13:52 UTC