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Arror and Kimwarer dams constructor hits at KRA

Italian firm, CMC Di Ravenna, that was contacted to build Arror and Kimwarer dams, has moved to court to sue Kenya Revenue Authority (KRA) for illegal taxation.

The company through its’ lawyer Senior Council Fred Ngatia claims that KRA illegally taxed them KSh 166, 247, 378.

Ngatia told the court that KRA breached the contract by taxing construction materials since all the building materials and services are tax free.

File image of Lawyer Fred Ng’ati (far right) [IMAGE/COURTESY]

“All materials and services associated with the project are zero rated. KRA has flouted the law by taxing construction materials the firm purchased,” Ngatia told court.

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The Italian firm also told High Court Judge Pauline Ntyamweya that KRA demanded additional KSh 333, 220 Value Added Tax (VAT) which the company failed to remit.

Judge Ntyamweya barred KRA from demanding VAT from the company until the matter is solved.

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The Director of Criminal Investigations George Kinoti has started investigation on the embezzlement of funds at the project. However Deputy President William Ruto has assured Kenyans that the project will continue as planned.

The DP said that shilling 7 billion is the only amount in question and not 21 billion as it was earlier stated. Though the Italian company has been declared bankrupt.

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