Kenya Revenue Authority (KRA) has been ordered to refund more than Sh54 million to household and electronics appliances supplier Hotpoint on account of bad debts arising from goods delivered to fallen retail giant Nakumatt.
The Tax Appeals Tribunal faulted the Commissioner of Domestic Taxes for disallowing the VAT (value-added tax) refunds of Sh54.8 million as sought by Hotpoint Appliances Ltd.
The tribunal chaired by Christine Muga said the fact that Nakumatt Holdings had been proven to be insolvent was enough to qualify the company for a refund as required by section 31 (1) of the VAT Act.
“In view of the foregoing, the tribunal finds that the respondent (KRA) erred in disallowing the appellant’s refund application,”…
