Africa-Press – Kenya. The High Court has ordered former Nairobi governor Evans Kidero to pay the Kenya revenue Authority Sh400 in unmerited tax.
Judge David Majanga faulted a ruling by the Tax Appeals Tribunal (TAT) which put the burden of proof on the Commissioner for Domestic Taxes.
Despite Kidero and the Commissioner reaching a consensus that funds raised for political party campaigns are not chargeable to tax, both parties failed to agree on whether the former governor had demonstrated the funds raised were only spent on political activities.
This was after audits carried out by the Commissioner established that the proceeds from fundraisers by the former governor were being deposited together with other business proceeds into his personal bank accounts.
The court documents show the former governor allegedly availed a single-page document titled ‘Statement of Receipts and Expenditure’, with no clear income and expenditure.
The revenue agency, therefore, appealed the ruling, demanding that Kidero demonstrates that funds so raised had actually been spent in political campaigns.
Scrutiny by the High Court found out that former city governor mixed political and personal funds hence the verdict.
Majanga said that if the money was retained or diverted to his own personal use, it would be taxable income to him and liable to income tax.
“Having failed to discharge this burden, this court rules in favour of the Commissioner and allows KRA to proceed and recover the sum of Sh427,269,795,” the ruling reads in part.
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