Judge blocks KRA’s illegal tax claim against insurance firm

The origin of the legal dispute is an audit conducted by the KRA’s Commissioner of Customs and Border Control on its Simba system.

Photo credit: Shutterstock

The High Court has barred the Kenya Revenue Authority (KRA) from pursuing a Sh27 million tax claim against Monarch Insurance, citing a breach of law.

Justice Julius Ng’arng’ar said it was unlawful for KRA to lodge tax claims against the insurer in 2023 for a transaction executed in 2011, which is more than a decade later and way past the five-year window prescribed in law.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.