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KRA wins case to collect taxes on dumped export petroleum

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Kenya Revenue Authority :Photo Courtesy

KRA and Rayan Logistics Limited case

Kenya Revenue Authority (KRA) has won a case to collect taxes from Rayan Logistics Limited and not Kenol Kobil as reported earlier.

The High Court sitting in Nakuru, ordered Rayan Logistics Limited, a transporter, to pay KRA Kshs.3, 954,673 in respect of export petroleum products that was consumed in Kenya.

Kenya Revenue Authority: Photo Courtesy

The Court in a Ruling delivered on 23rd April 2020 dismissed an application by the company seeking for conservatory orders stopping KRA from enforcing collection of the taxes. The tax demand was made after KRA’s investigations revealed that the export petroleum was dumped in the local market.

Rayan Logistics Limited had initially made a representation that it had consigned the petroleum products to be resold in South Sudan. KRA’s investigation revealed that the trucks ferrying the consignments were released from Kenya Pipeline Depot in Nakuru on 22nd March 2017 but there was no evidence that they were cleared at the Malaba Border on 23rd March 2017.

Subsequently, a demand was made for the tax as against Rayan Logistics Limited who was the consignee of the consignment.

The High Court in dismissing the Application for conservatory orders held that the company did not demonstrate whatsoever that any of its fundamental rights were at stake.

Felicity Gitonga

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