Taxman loses quest for Sh1.6b Kenya Pipeline Refineries Ltd tax

High Court Judge Justice George Odunga deliveres a judgement on former CS Michael Kamau at the Milimani law courts on 9th March, 2016. Eng. Michael Kamau is challenging his prosecution over corruption charges.PHOTO.FIDELIS KABUNYI

The Kenya Revenue Authority has lost a six-year court battle against the Kenya Pipeline Refineries Ltd in which it was seeking to recover Sh1.63 billion in taxes.

In a ruling delivered by Justice George Odunga on Monday, the High Court said the taxman had violated the law by demanding taxes from the fuel that Kenya Pipeline Refineries Ltd (KPRL) consumed in its furnaces and boilers to produce heat and run its machinery. Justice Odunga said for 45 years, KPLR had relied on an initial communication by the Kenya Revenue Authority (KRA) that oils used in the refinery, whether received as such or produced in the plant, were not subject to duty.