Reprieve for Kidero as court bars KRA from obtaining Sh427million from NCBA accounts
Former Nairobi Governor Evans Kidero got relief in his fight to block Kenya Revenue Authority (KRA) from seizing Sh427 million in his accounts at NCBA Bank over unpaid tax.
This is after he obtained a court order barring the taxman from wiring Sh427 million from his account following a High Court judgment last week that found Kidero under-declared taxes.
Justice David Majanja stopped KRA from enforcing the order that allowed it to collect the amount pending determination of an appeal filed by Kidero at the Court of Appeal.
“Pending the hearing of the application, an order be and is hereby issued suspending execution of the judgment and decree issued on February 4 which granted KRA permission to recover Sh427,269,795 from the applicant,” ruled Justice Majanja.
In court documents, Kidero says that the KRA wrote to the bank on February 8, demanding the Sh427 million in the middle of an appeal over the High Court judgment.
“The tax claimed is grossly excessive, punitive and the respondent (KRA) would suffer no prejudice should stay of execution be granted,” he says.
The KRA claimed that the former governor had not paid tax of Sh427 million, in a period of five years.
Kidero had claimed that he had received the monies from donors as political campaign funds which are not chargeable to tax.
However, Justice Majanja after scrutinising the list provided by Kidero said it didn’t show the money was from his campaign accounts and allowed the taxman to collect the disputed amount.
The list provided showed names and telephone numbers of persons who Kidero alleges contributed to his political campaign.
“I come to the conclusion that Kidero failed to discharge his burden as the evidence on record could not support such a conclusion reached by the tribunal,” he added.
Kidero, in his appeal filed through lawyer Ochieng Oduol, argued that the decision was unjust and a great denial of justice.
“The learned judge erred in law in making orders that violated the Constitution of Kenya, the due proper administration of Justice and the Tax Procedures Act. Further, the learned judge failed to handle the matter for the purpose of attaining a just determination thereof,” said Oduol.
He accused the judge of subverting the need for uniformity and consistency in determining tax disputes, stating that he did not properly assess the tax obligations which were due for remission to KRA.
Kidero wants the Court of Appeal to overturn the decision which he claims is erroneous and meant to punish him while leaving other politicians who have not been told to account for their campaign funds.
