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KRA Wins Ksh1.2 Billion Tax Dispute Against Oxygen 8 East Africa Limited

Nairobi Hospital
Times Tower, the building that houses the KRA. [PHOTO/ COURTESY]

The Kenya Revenue Authority (KRA) has won a Ksh1.2   billion tax case against Oxygen 8 East Africa Limited.

In the case that was before the Tax Appeals Tribunal, Oxygen wanted more time to file an appeal against a tax demand by the KRA amounting to Ksh1,185,596,692.

According to the taxman, the amount includes withholding tax that the firm has not submitted between July 2015  to  February  2019.

Oxygen had filed a Notice of Appeal against the demand but failed to file a Memorandum of Appeal within the stipulated time. Oxygen said that its managing director was not in the country at the time of filing the appeal.

In its counter-argument, KRA accused Oxygen of failing to file an affidavit to explain the late filing of Memorandum of Appeal, rendering the Notice of Appeal invalid.

Read: KRA Sets Up Special Unit For Digital Taxation

In a ruling delivered on September 11, 2020 the Tribunal said that Oxygen 8 East Africa Ltd had failed to provide an affidavit on time.

The Tribunal further found that Oxygen had agreed to pay KRA Ksh986,780,277 but failed to enter into an agreement with KRA on how to pay by the time it filed the Notice of Appeal.

“…in its own admission, the applicant has an undisputed tax liability which is unpaid and it has not demonstrated to us that it has offered any payment plan for the same which is acceptable to the respondent,” the Tribunal ruled.

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Written by Francis Muli

Senior reporter at Kahawa Tungu, Muli has a passion for human interest stories. Believes in unearthing societal rots that have been hidden from the public eye.
Follow me on Twitter @FmuliKE. Email

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