× Business BUSINESS MOTORING SHIPPING & LOGISTICS DR PESA FINANCIAL STANDARD Digital News Videos Health & Science Lifestyle Opinion Education Columnists Moi Cabinets Arts & Culture Fact Check Podcasts E-Paper Lifestyle & Entertainment Nairobian Entertainment Eve Woman Travelog TV Stations KTN Home KTN News BTV KTN Farmers TV Radio Stations Radio Maisha Spice FM Vybez Radio Enterprise VAS E-Learning Digger Classified Jobs Games Crosswords Sudoku The Standard Group Corporate Contact Us Rate Card Vacancies DCX O.M Portal Corporate Email RMS

Apex court declines to strike out Sh5.6 billion tax suit

By Kamau Muthoni | August 14th 2020
By Kamau Muthoni | August 14th 2020

The Supreme Court has dismissed an application to strike out a Sh5.6 billion tax suit filed by Kenya Revenue Authority (KRA) against international soft drinks manufacturer Coca Cola Company.

Coca Cola had objected to apex court judges hearing the appeal, arguing there was no constitutional issue to be interpreted in the dispute.

However, a four-judge bench led by Chief Justice David Maraga and Justices Mohamed Ibrahim, Smokin Wanjala and Njoki Ndung’u found that the crust of the case was on the application of sections of Customs and Excise Act.

“In view of the reasons tendered, we find that this court has jurisdiction in respect of this appeal. Having so found, we have no option but to dismiss the preliminary objection,” the court ruled.

The case stems from a Sh5.6 billion demand by KRA. The revenue authority argued that the firm failed to pay its excise duty between 2006 and 2008 on returnable crates and empty soda bottles.

Coca Cola had lost the case before the High Court, which found that KRA was within the law in demanding the contested amount. Aggrieved, the multinational moved to the appellate court.

According to KRA, its audit revealed that a number of returnable containers used by Coca Cola subsidiaries in Kenya had their taxes not paid for.

KRA demanded Sh5.6 billion on account of alleged arrears of excise duty and interests, while maintaining returnable containers (bottles and crates) were subject to taxes.

But Court of Appeal Judges Wanjiru Karanja, Otieno Odek and Sankale ole Kantai disagreed with the taxman by finding that the law does not speak on whether firms should pay taxes on returnable containers.  

Share this story
KRA boss' term extended
Treasury Cabinet Secretary Ukur Yatani gazetted the changes on August 12.
CS Najib Balala summoned over stalled project
There have been reports of cut-throat competition between agencies under the Ministry of Tourism.