Sugar dealers’ accounts are frozen by the court due to a KRA tax claim

Following the disappearance of unpaid sugar, the Kenya Revenue Authority (KRA) is prosecuting 12 businessmen over allegations of tax evasion, and the High Court has frozen their bank accounts.

The traders include Highrise Hauliers, Beder Wholesalers, Deira Commodities, Highrise Commodities, Tazama Commodities, Tazama Distributors, Kings Commodities Ltd, Boniface Maina Kagechu, Maha Stores, Igaal Trading Company, and Sema Commodities.

Kenya's sugar imports up 19% in H1, 2020 to 237,581 tonnes

Justice Alfred Mabeya granted KRA’s request because the traders had not demonstrated that, contrary to what the taxman had claimed, they would not obstruct tax collection.

“In the premises, I find that the applicant has proved its case on a balance of probabilities. That if the funds in the subject accounts are not preserved, there is a likelihood of the interested parties frustrating the collection thereof,” said the judge.

The judgement stated that once the tax authority asserts a fear of frustration in the collection of the taxes owing, the burden of proof shifts to the taxpayer.

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