NAIROBI: Kenya Revenue Authority (KRA) has failed to seal a deal with stock brokers over the Capital Gain Tax. This is despite the taxman seeking time for negotiations.
The parties will now continue with the case filed by the stockbrokers as the two could not agree on the implementation of the law that will see the brokers remit taxes on behalf of their clients. Stockbrokers during the mention of the case before High Court Judge Mumbi Ngugi last week, sought to have the court issue temporary orders barring the taxman from demanding the taxes under the new law.
They say they would be at loss when they will be compelled to remit the monies by February 20. “We are unable to cover ourselves as we do not have temporary orders barring the respondents from demanding the taxes from us.
we will get charges because we are unable to pay,”’ stockbrokers’ lawyer Walter Amoko argued. KRA through its lawyer David Ontweka told the court that the law could not be declared unconstitutional on the basis of being unclear. KRA acting Deputy Commissioner James Ojee in a replying affidavit filed before the court said the challenges faced in implementing CGT law could not render it impossible to enforce.
