The chief tax collector has lost a legal battle in which it demanded Sh378 million in arrears due to delayed audits by Export Trading Company Limited. In the case, KRA sought to recover Sh378 million from the company as tax arrears. The lower court held in favour of the company, making a declaration that the demand for taxes by KRA violated its rights. In its letter, KRA had asked the company to pay the shortfall of Sh378 million being the tax due of Sh228 million, penalties of Sh138 million and interest of Sh11 million. The rate of tax payable for rice imported from Pakistan is 35 per cent, whereas for rice imported from elsewhere is 75 per cent.

Source: The Star October 28, 2020 20:03 UTC