The Court of Appeal delivered a ruling that grants the Kenya Revenue Authority(KRA) legal powers to search premises and seize goods as per the provisions of the Tax Procedures Act.
The Court of Appeal found the arguments by KRA to be right in that if curtailed from enforcing the provisions of Section 44 and 60 of the Tax Procedures Act – the orders issued by the High Court had far-reaching implications and would cripple the authority in the execution of its mandate.
The three-judge bench consisting of Justice Martha Koome, Fatuma Sichale and Jamila Mohamed also reasoned that the tax collector was on course to lose a lot of revenue in taxes if KRA were to lose the appeal, an action which would have been detrimental and irreversible.
The court held that this was a unique case that has a public interest, bearing in mind the mandate of KRA as a tax collection agency on behalf of the people of Kenya.
The High Court had previously ruled that the two Sections of the law serve to limit the rights of a person guaranteed by Article 31 (b) of the Constitution, in a case that had been filed by Dr Robert Ayisi against the KRA.
The High Court declared that Section 44 and 60 of the Tax Procedures act did not pass the test under Article 24 of the Kenyan Constitution, which requires any law limiting the rights guaranteed by the Constitution must be reasonable and justifiable in an open and democratic society.
The Kenya Revenue Authority felt dissatisfied with the ruling, prompting them to proceed to the Court of Appeal for further redress, where they finally got their day.
KRA had also filed to have the petitioner, former Nairobi County Secretary Dr Robert Ayisi arrested. The latter prayer was, however, not granted by the court of appeal.
The law now allows KRA officers to enter into and search taxpayer's premises including but not limited to residential, offices, private homes, factories, industries, vehicles, warehouse, laboratory, or any other location and seize data, records and equipment for purposes of examination.
