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Embu tycoon in Sh9bn tax call ordered to pay Sh10m

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Embu tycoon in Sh9bn tax call ordered to pay Sh10m


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Summary

  • Patrick Njiru Kuria, the tycoon facing a Sh9 billion tax demand from Kenya Revenue Authority (KRA), has been directed to pay the taxman Sh10 million as a condition to stop the enforcement.
  • Justice David Majanja directed the trader to pay within two weeks, failure to which the order will be discharged and KRA will be free to enforce the demand.

Patrick Njiru Kuria, the tycoon facing a Sh9 billion tax demand from Kenya Revenue Authority (KRA), has been directed to pay the taxman Sh10 million as a condition to stop the enforcement.

Justice David Majanja directed the trader to pay within two weeks, failure to which the order will be discharged and KRA will be free to enforce the demand.

“Since the factual circumstances relating to the Appellant’s business are not in doubt and taking all the facts into account, an order for payment of a reasonable amount would be appropriate in the circumstances,” the judge said.

He said an order for payment of a substantial proportion of the tax demanded would lead to closure of the company, which he noted would also be inimical to the state’s interests.

“It must also not lost to the parties that the appeal may be wholly or partially successful,” he said.

The tycoon, who trades as Paleah Ltd- a store in Embu County, said he risks closing down if KRA goes ahead and makes the demand.

He pleaded with the court saying the company is a going concern and in fact, it had paid Sh17.5 million to KRA, as part of the outstanding taxes.

In his ruling, justice Majanja noted that the company produced its annual report and financial statement for 2018, showing a profit of Sh28.7 million.

“It is not in doubt that if this amount is enforced at once, the appellant will close down with all the attendant consequences. The Commissioner has not disputed the fact that the appellant is a trading company and a going concern,” the judge said.

The tycoon, who has managed his wealth quietly got into trouble after KRA used his bankers and suppliers to unearth billions he is alleged to have failed to pay.



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