Following the court order Equity bank is forced to pay sh 234million to the Kenya Revenue Authority after dismissing the lender’s appeal on the findings of the tax tribunal debts be treated as part of the corporate tax.

 The guidelines issued by the Central Bank of Kenya in 2013, puts forward the criteria for deducting debts, thereby making the judge of the high court justice David Majanja to rule out that Equity bank failed to show up that it had already exhausted all avenues to collect its debts.

The evidence presented gives a clear record of how the commissioner of Domestic Taxes carried out a tax compliance audit of Equity’s records with regard to corporate tax for the year 2015, excise duty for the period from august 2013 to December 2015 and Pay As You Earn (PAYE) for 2016.

The assessment carried out gave out a clear picture on how equity bank has been operating without meeting out the demands of the guidelines issued therefore the judge has nothing else other than ruling out justice among the two parties.  

By: Nelly Itinot

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