Court orders Kenya Revenue Authority to re-admit firm to its online platform

Kenya: The High Court has ordered Kenya Revenue Authority to reinstate United Millers to the authority’s online system to clear goods for export at the Mombasa Port.

The food processing company was allegedly blocked from using the KRA’s online platform, the Simba system, to clear its goods for export.

High Court judge Weldon Korir in his ruling ordered that KRA should have United Millers returned into the Simba system with immediate effect. The orders by the court were issued after it was found that KRA gave no reason for blocking the company that deals with various kinds of wheat flour, vegetable cooking oil, fat and soap.

“There was no evidence before this court to show that United Millers was involved in customs fraud and it seems  the Commissioner of Taxes blocked the company for other reasons he deemed fit,” ruled justice Korir.

At the centre of stand-off between KRA and United Millers was an audit report that alleged that the firm registered goods for export but supplied the same goods in the local market.

Drastic action

KRA claimed it lost Sh48 million between 2008 and 2013, prompting it to take the drastic action that would have goods from the miller lying in the port without clearance. Justice Korir likened the decision of KRA to an undertaker who does not care about the feelings of the person he is burying. The judge also ordered KRA to clear the company’s goods meant for export.

However, he said the orders did not affect a Sh78 million tax refund claim launched by the miller. The issue of tax refund was a conflict issue between KRA and the firm, he said.  KRA insisted it had Sh48 million outstanding tax claim against the firm. “The orders do not affect the claim by the applicant and the claim made by the defendant (KRA),’’ the judge said.