The troubled Mumias Sugar has been dealt a major blow after the Tax Appeals Tribunal allowed the Kenya Revenue Authority (KRA) to collect a sum of Ksh3.5 billion of unpaid taxes.
The tribunal arrived at the decision after the receiver manager of the company failed to challenge the assessment done by KRA and provide evidence.
KRA had raised concerns after the caretaker manager failed to pay various tax heads and file the miller's annual tax from 2013 to 2023.
The taxes issued to Mumias Sugar included income tax, Pay-As-You-Earn (PAYE), withholding tax, excise duty, and VAT. Kenya Revenue Authority building at Times Towers KENYANS.CO.KE Previously, the Mumias Sugar receiver manager had challenged the assessments, citing a lack of access to pre-receivership records and alleged errors in the tax calculations. However, in its judgment, the tribunal dismissed the appeal finding that the receiver manager failed to provide sufficient evidence to prove the tax assessments were incorrect and that the tax assessments by the commissioner were justified. "The Appeal be and is hereby dismissed.
