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KRA Denied A Slice Of Ksh4.4 Billion Paid To Westgate Mall Owners

Westgate shopping mall
Westgate shopping mall. Image: Courtesy

The Kenya Revenue Authority (KRA) will not receive a slice of Ksh4.4 billion paid to Westgate Mall over the 2013 terror attack, the court has ruled.

KRA was demanding Ksh380.3 million from Sony Holdings Ltd, which was denied by the Tax Appeals Tribunal.

The taxman, agitated by the decision of the Tax Appeals Tribunal, moved to the High Court seeking to overturn the decision of the tribunal.

However, Justice David Majanja dismissed the appeal saying KRA failed to demonstrate any error in the Tribunal’s decision.

“Based on the law and evidence, the Commissioner failed to demonstrate any error, factual or otherwise, in the Tribunal’s decision that would warrant intervention by this court. On the other hand, Sony Holdings was able to demonstrate before this court that the Tribunal came to the correct conclusion based on the facts and law,” ruled Justice Majanja.

Read: Two Westgate Terror Attack Convicts Sentenced To 33 And 18 Years In Jail

According to KRA, Ksh600 million of the compensation was income liable for payment of 30 percent corporation tax.

Sony Holdings Ltd, which owns the mall, received Ksh3.1 billion as compensation for damage from Kenindia Assurance Company and an additional Ksh1.2 billion as compensation for loss of rent.

However, Sony Holdings held that they suffered a loss of over Ksh1 billion after reconstructing the mall at Ksh4.04 billion against a compensation of Ksh3.1 billion.

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Written by Francis Muli

Follow me on Twitter @FmuliKE. Email francis@kahawatungu.com

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