The Kenya Revenue Authority (KRA) has been ordered to collect Ksh 172 million from a firm based in Nairobi County.
Tax Appeals Tribunal dismissed an application made by Kazimoni Auto Tyres Limited.
The company had challenged KRA's decision to demand the Ksh 172 million tax arrears.
The taxman said that the firm owed it after tax compliance audits indicated that the firm had defaulted on paying taxes.
It added that the firm failed to provide relevant documents to supports the allegation that it paid taxes, on February 18, 2019.
KRA further said that the company did not appeal the agency's decision within the stipulated 30 days, but rushed to file a suit with the Tax Tribunal later on.
Kazimoni Tyres, in its argument, said that it couldn't provide documents as its director had travelled abroad for medication.
The tax tribunal, however, ruled that the evidence tabled in court could not substantiate that the director was treated abroad.
It added that the company also failed to file an appeal against KRA's decision to demand tax arrears within the required 30 days.
"In view of the foregoing, the Tribunal makes a finding that the applicant has failed to demonstrate to its satisfaction as to the reasons for its delay in filing the appeal on time," the judges said.
KRA targetted to achieve Ksh 1.57 trillion in the 2020/21 financial year. The authority reached out to Kenyans to report any tax cheats.
It also initiated a crackdown on wealthy businessmen and firms suspected to be committing tax frauds.
