Air Kenya Express has lost a tax appeal case it filed against Kenya Revenue Authority and will now pay Import Declaration Fees amounting to Sh14m.
In a statement on Monday, KRA said this followed a ruling by Tax Appeals Tribunal which upheld the decision by KRA to demand the duties from the airline resulting from import of aircraft and aircraft spares.
The company, which was the Appellant in the case, had argued that its goods were exempted from payment of IDF, and that the Authority had used the wrong percentage of 2.5% instead of 2.0% while calculating the fees assessed, leading to an overcharge.
“The Tribunal however noted that although the company’s goods (aircraft and aircraft spares) were exempt from having to submit IDF, they were not exempt from payment of IDF as the regulations did not in any express manner exempt the goods,” KRA said.
On the issue of the alleged wrong computation, the Tribunal noted that 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.
Consequently, the Tribunal upheld the objection decision and the assessed amount, penalties and interest.