Mwalimu SACCO loses Ksh 44.9mln case

NAIROBI-Mwalimu National SACCO days ago lost an appeal seeking quashing of Ksh 44.9 million tax demand by government, says SACCO Review

High Court Justice, David Majanja dismissed the petition holding that an appellate court dealing with matters of law cannot engage in a factual exercise as it will be usurping the powers of the tax appeals tribunal and also exceeding its own jurisdiction.

“I find that the appellant [Mwalimu SACCO]  is inviting the court to look at the evidence again and come to a different factual conclusion to that of the Tribunal and as a consequence, conclude that the computation therein tallied with the payments made to the commissioner and that the same was sufficient to absolve the appellant,” Justice Majangaa said.

He said Kenya Revenue Authority [KRA] is still open for SACCO to follow up on the expenses through the prescribed procedure on corporate tax.

KRA had demanded Ksh 1.2 billion in 2018 arising from Pay As you Earn [PAYE] and corporate tax but the tribunal reduced the amount leaving Ksh 44.9mln.

KRA had carried out reconciliation on taxable expenses on the SACCO and said that some of the expenses of the Sacco were not subjected to tax as required by law.

KRA assessment was objected to by the SACCO and the matter was referred to the tribunal.

The Sacco had defended itself saying it provided evidence of all its PAYE tax payments made to KRA from January 2013 to December 2016.

They said the court heard that the tribunal only considered a table drawn by the SACCO and submitted it, they did not look at the supporting documentation for the information provided by the SACCO.

https://thecooperator.news/mwalimu-national-dt-sacco-to-sell-assets-of-acquired-bank/

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