The High Court in Nairobi has allowed Kenya Revenue Authority (KRA) to collect KShs. 25 million tax from a company dealing with imports and wholesale of industrial chemicals.

Justice David Majanja sitting at the Milimani Law Court’s Commercial and Tax Division, dismissed an application by Manuchar Kenya Limited seeking an extension to file an appeal disputing the amount of taxes demanded by KRA.

Manuchar Kenya Limited moved to court on 11th August, 2020 in an application seeking extension to file an appeal ‘out of time’ after the Tax Appeals Tribunal (TAT) in its judgement affirmed KRA’s demand of KShs. 25,431,177 tax.

KRA had carried out an audit against Manuchar Kenya Limited for the years 2010 – 2012 and raised an assessment of KShs. 18,902,123.00 for Corporation Tax and Kshs. 6,529,054.00 for VAT on 17th March 2016.

The case was dismissed due to a delay in lodging.

The company filed a Notice of Appeal on 25th April 2018 evincing its intention to appeal against the Tribunal’s judgment and filed the application seeking extension on 11th June 2020.

Justice Majanja held that timelines are an integral part of litigation and are necessary to ensure that parties rights are determined fairly and expeditiously. “While a party has a right to appeal against a judgment, the right is not open ended,” said Justice Majanja

The Judge further stated that the right to appeal must be exercised timeously as a judgment settles the legal rights of the parties and marks the end of the dispute.

“Having failed to surmount the first hurdle of explaining the two-year inordinate delay in filing the appeal, I am not inclined to exercise the court’s discretion in the applicant’s favour,” Justice Majanja ruled.

Commissioner, Legal Services & Board Coordination