Tax Appeals Tribunal has upheld the decision by the Kenya Revenue Authority (KRA) to charge Air Kenya Express Ltd a total of Sh14,330,770 million as Import Declaration Fees (IDF). Air Kenya Express Ltd an appellant in the case, had argued that its goods were exempted from payment of IDF, claiming that KRA had used the wrong percentage of 2.5 per cent instead of 2.0 per cent, while calculating the fees assessed, leading to an overcharge.
The Tribunal also upheld the objection decision and the assessed amount, penalties and interest.
In a press statement sent to newsrooms by the KRA Commissioner Legal Services and Board Coordination Section, the tribunal said even though the company’s aircraft and aircraft spares goods were exempted from submitting IDF, it did not include exemption in paying IDF.
“On the alleged wrong computation, the Company did not provide any proof of payment as required by Section 30 of the Tax Appeals Tribunal Act 2013 and the allegation was therefore not tenable,” noted the Tribunal.
By Bernadette Khaduli