The Kenya Revenue Authority (KRA) has reportedly lost its 5.6 billion Kenyan Shilling tax dispute case with the Coca Cola bottlers in Kenya after the Supreme Court turned down a request to open up afresh the litigation that begun more than ten (10) years ago.
The Kenya Revenue Authority (KRA) was hoping that the Supreme Court would review the decision to dismiss the case in question.
The Judges however, rejected the request and upheld a previous decision reached on the 22nd of September 2021 stating that opening up the dispute again which began in 2012, is not only unconscionable but cruel and insensitive.
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In the words of the five judge bench presided by Chief Justice Martha Koome, “We note that the dispute commenced in the High Court in October 2012, ten years ago, then moved to the Court of Appeal, over nine years ago in July 2013.”
It added that, “To start the case all over again, for no fault of the respondents, is not only unconscionable but also insensitive and cruel.”
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The 5.6 billion Kenyan Shilling tax dispute case between the Kenya Revenue Authority (KRA) and the local Coca Cola bottlers has to be whether or not the Coca-Cola Company should pay taxes on costs which it incurred during the sanitizing and washing of returned bottles.
The Kenya Revenue Authority (KRA) is reportedly demanding interests, penalties, and tax arrears for the period between 2006 to 2009 connected to the excise tax on containers that are returnable.
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The Kenya Revenue Authority (KRA) sued the holders of the Coca-Cola franchises in Kenya; Rift Valley Bottlers, Kisii Bottlers, Mount Kenya Bottlers, and Nairobi Bottlers.
The Kenya Revenue Authority (KRA) moved its case to the Supreme Court after three (3) judges of the Court of Appeal overturned a decision reached by the High Court on the 26th of October 2012. The overturned decision would have allowed the Kenya Revenue Authority (KRA) to place levy taxes on the returnable containers.
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The Judges of the Supreme Court unanimously stated that the Kenya Revenue Authority (KRA) has not only been “injudicious (in the dispute) but also brazen” in disregarding the instructions of the court’s Deputy Registrar.
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The Supreme Court also stated that the Kenya Revenue Authority (KRA) had not handled the matter with the seriousness it deserved.
The other judges on the bench include Deputy Chief Justice Philomena Mwilu, Justice Mohammed Ibrahim, Justice Njoki Ndung’u, and Justice William Ouko.
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