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Trader sues KRA over freezing of accounts

Times Tower. KRA

Times Tower in Nairobi, the headquarters of Kenya Revenue Authority.

Photo credit: File | Nation Media Group

What you need to know:

  • Dalcom Kenya Limited claims that the taxman violated its rights after freezing its accounts and ordering its major clients to remit the taxes directly to the KRA. 
  • The taxman’s decision stemmed from an alleged default in payment of taxes by the company between November 2014 to July 2016.
  • The company, with an annual turnover of Sh100 million, raised an objection to the said notice and challenged its accuracy.

A trading company has moved to court seeking damages of Sh100 million from the Kenya Revenue Authority (KRA) over alleged loss of business after its bank accounts were “maliciously and erroneously” frozen by the taxman over claims of tax default.

Dalcom Kenya Limited claims that the taxman violated its rights after freezing its accounts and ordering its major clients to remit the taxes directly to the KRA.