Subscribe I am already a subscriber

You are using software which is blocking our advertisements (adblocker).

As we provide the news for free, we are relying on revenues from our banners. So please disable your adblocker and reload the page to continue using this site.
Thanks!

Click here for a guide on disabling your adblocker.

Subscribe I am already a subscriber

Kenya: Flower firm sues revenue agency over 13 million USD tax demand

A flower company in Naivasha is contesting a demand for payment of Sh1.3 billion tax by the revenue authority, saying the formula used threatens the industry.

Van Den Berg Kenya Ltd claims the Kenya Revenue Authority used an incorrect formula to arrive at the tax figure for 2008-2013.

Through lawyer Tom Ojienda, the company said the taxman insists on demanding "unsustainable and unreasonable taxes" even after the company had worked out the tax due and submitted its returns.

"KRA bases its claim on a general formula and not on actual sales. This threatens the flower industry," said Prof Ojienda.

Van Den Berg Kenya grows roses in Kenya and sells them to a related company, Van Den Berg BV in the Netherlands.

KRA had demanded Sh2.1 billion but revised this to Sh1.3 billion after a few concessions.

Read more at allAfrica.com