KRA wins tax evasion scheme suit

The Tax Appeals Tribunal (TAT) has ruled in favour of the Kenya Revenue Authority (KRA) in a tax dispute case filed by Roshina Timber Mart Ltd. The firm was seeking orders to stop KRA from disallowing input VAT based on fictitious tax invoices from ghost traders, dubbed the 'missing traders' scheme.

The scheme was established to reduce a tax liability without the taxpayer making taxable supplies or the supplier of the goods being captured on the tax invoices used to deduct input VAT.