KRA seeks dismissal of application on dam

The KRA has urged the court to dismiss an application filed by CMC Di Ravenna-Kenya challenging a decision to pay Sh333,220 as VAT for construction of Itare Dam in Nakuru.

In an affidavit, KRA’s Domestic Taxes Department chief manager Patrick Chege said the case is an abuse of the court process.

He says it was unnecessary for the company to file the case and seek stay of their decision since they have not taken any action to enforce the payment of taxes demanded since filing of the tribunal. The case will be heard on March 20.

In December last year, judge Pauline Nyamweya suspended KRA’s decision dated June 19 last year demanding Sh333,220 from the company on account of VAT.

This is after the company argued the dam project is an official funded project.

This means that all supplies of goods and services made to the project are classified as zero in accordance with the provisions of the VAT Act 2013.

In May 2015, CMC Di Ravenna (Kenya) entered into a contract with the Rift Valley Water Services Board for construction of Itare Dam for Sh28. 9 billion.