Kenya Revenue Authority, Kiamba fail to agree on Sh480 million tax claim

Kenya Revenue Authority has failed to broker a deal with suspended Nairobi County Chief Financial Officer Jimmy Kiamba over Sh400 million alleged unpaid taxes.

Though the amount tabled by the taxman before Commercial Court Judge Fred Ochieng’ is contested by the CFO, the case seeking to have his 10 bank accounts frozen will now be heard.

Mr Kiamba told the court that he had not come to an agreement with the Kenyan Caesar and wanted the court to hold accounts amounting to Sh98 million and allow him to access the remainder that have close to Sh25 million.

There were orders in place freezing his six accounts held in CFC Stanbic Bank, two accounts at Co-operative Bank, one at Standard Chartered Bank, another with Equity Bank and Gulf African Bank.

“The accounts have Sh123 million and the claim is Sh98 million. I pray that orders be varied to attach all accounts holding Sh98 million to enable me access the rest of the accounts,” Kiamba told the court.

However, the taxman raised an objection to Kiamba’s prayers, saying that he was pursuing Sh480 million for unpaid taxes between 2006 and 2013.

“The claim is not for Sh98 million but Sh480 million. Therefore there should be no variation of the interim orders,” lawyer Sylvester Okello, for KRA argued.

Under-declare

In the case, KRA argues that he allegedly failed to place information relating to his extra sources of income for eight years when he was filing his tax returns. Mr Okello in his application argued that Kiamba was likely to frustrate the taxman to recover the amount bearing that the institution was demanding colossal sum of money.

“The Kenyan tax regime is based on self-assessment which largely relies on the full disclosure based on good faith of individuals or companies making tax returns. The self-assessment or system is open to abuse by unscrupulous taxpayers who may conceal or under-declare their income for purposes of paying less taxes,” the court heard.

According to KRA, Kiamba had assets, some in Kileleshwa, Runda and Muthaiga that were valued at more than Sh250 million. According to KRA, Kiamba had not indicated that he was collecting rent in eight premises based in Nairobi.