NBK to Pay Ksh510 Million for Disallowed Tax Credits Claim

The Tax Appeals Tribunal has ruled that National Bank of Kenya Limited is liable to pay taxes amounting to Ksh510,951,944.00.

The taxes arise out of disallowed credits wrongfully claimed by the bank under the Income Tax Act.

The Tribunal further held that the credits claimed by the bank under the Income Tax Act were clearly incorrect as the claim was not what is envisaged by the law.

The Tribunal, in its judgment delivered on 13th May 2021, ruled that National Bank of Kenya Limited was not justified in utilizing alleged tax overpayment to settle off its tax liabilities as the relevant law only authorizes the Authority to apply a tax over payment in payment of taxes owed by a taxpayer.