{"id":90991,"date":"2023-04-27T21:03:28","date_gmt":"2023-04-27T21:03:28","guid":{"rendered":"https:\/\/www.africa-press.net\/kenya\/all-news\/high-court-blocks-revocation-of-ncba-tax-waiver"},"modified":"2023-04-27T21:10:23","modified_gmt":"2023-04-27T21:10:23","slug":"high-court-blocks-revocation-of-ncba-tax-waiver","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/kenya\/all-news\/high-court-blocks-revocation-of-ncba-tax-waiver","title":{"rendered":"High Court blocks revocation of NCBA tax waiver"},"content":{"rendered":"

Africa-Press – Kenya. <\/strong><\/span>The High court has issued temporary orders stopping the National Treasury from revoking a tax exemption issued during the 2019 CBA-NIC merger. The order issued on Thursday, April 27 by Lady Justice Mugure Thande stopped KRA from executing a directive issued by Treasury CS Njuguna Ndungu to recoup the taxes from NCBA bank.<\/p>\n

“I am satisfied that the application has met the test for the grant of conservatory orders at this ex parte stage. Accordingly, Prayer 2 of the application is hereby granted,” the order reads in part.<\/p>\n

The judge certified the case as urgent and ordered that petition papers be served to Attorney General Justin Muturi and Treasury CS Njuguna Ndungu by May 5. The Judge further directed that the responses to the Petition and Application be filed and served by May 19.<\/p>\n

The bank had filed a case at the Constitutional Division of the High Court saying the revocation and any subsequent demand for tax went against its legitimate expectation that decisions granted by a government institution are final as outlined in Article 47 of the Constitution.<\/p>\n

The bank said it was not involved in the decision making process leading to the revocation as it was never informed of any intentions to have the approval receded, nor was it represented.<\/p>\n

Ndungu in a letter dated March 24 directed the Kenya Revenue Authority to claim the Capital Gains Tax following the CBA-NIC merger. Capital Gains Tax is levied on profit from the sale of property or an investment.<\/p>\n

“Upon review of your letter and in order to ensure that all taxpayers pay their share of taxes, Cabinet Secretary National Treasury revokes the approval issued on June 19, 2019,” it reads in part.<\/p>\n

“In this case, KRA is advised to proceed to collect the appropriate taxes due from NCBA Bank,” Ndungu said in the letter to the taxman.<\/p>\n

The letter, which NCBA said it received on April 12, was copied to Gachora and the National Secretary PS. Gachora in a letter dated April 20 had sought audience with Ndungu for him to clear the air on the revocation.<\/p>\n

He said it was not clear why the approval of exemption of CGT had been revoked. The sum total of the revocation of the tax exemption meant that NCBA bank was to pay KRA in excess of Sh900 million including interest.<\/p>\n

The value of the CBA shares was not quoted during the sealing of the merger deal but market players estimated the value of 53 per cent stake at Sh35 billion.<\/p>\n

This was based on the book value of Sh65 billion at the time the deal was closed, translating to a stamp duty charge of over Sh350 million. The Sh900 million KRA is now laying claim to includes interest accrued over the five-year period since the merger was sealed on June 19, 2019.<\/p>\n

During that time, former Treasury CS Ukur Yatani in a letter dated June 21, 2019 said approval had been granted to exempt from Capital Gains Tax the instruments executed in the transfer of shares and the transfer of assets and liabilities relating to the merger of NCI Group PLC and Commercial Bank of Africa Limited.<\/p>\n

This was based on provisions of the Eight Schedule of the Income Tax Act which allowed the merger to be exempted from CGT. Updated: 22:12, April 27, 2023<\/p>\n

For More News And Analysis About Kenya<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Kenya. The High court has issued temporary orders stopping the National Treasury from revoking a tax exemption issued during the 2019 CBA-NIC merger. The order issued on Thursday, April 27 by Lady Justice Mugure Thande stopped KRA from executing a directive issued by Treasury CS Njuguna Ndungu to recoup the taxes from NCBA […]<\/p>\n","protected":false},"author":84,"featured_media":90990,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,3],"tags":[6857,7003,544],"class_list":["post-90991","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-community","tag-africa-press","tag-africa-press-kenya","tag-kenya"],"yoast_head":"\nHigh Court blocks revocation of NCBA tax waiver - kenya<\/title>\n<meta name=\"description\" content=\"The High court has issued temporary orders stopping the National Treasury from revoking a tax exemption issued during th ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/kenya\/all-news\/high-court-blocks-revocation-of-ncba-tax-waiver\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"High Court blocks revocation of NCBA tax waiver\" \/>\n<meta property=\"og:description\" content=\"The High court has issued temporary orders stopping the National Treasury from revoking a tax exemption issued during th ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/kenya\/all-news\/high-court-blocks-revocation-of-ncba-tax-waiver\" \/>\n<meta property=\"og:site_name\" content=\"kenya\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2023-04-27T21:03:28+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-04-27T21:10:23+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2023\/04\/postQueueImg_1682613216.80.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"720\" \/>\n\t<meta property=\"og:image:height\" content=\"505\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/high-court-blocks-revocation-of-ncba-tax-waiver#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/high-court-blocks-revocation-of-ncba-tax-waiver\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"High Court blocks revocation of NCBA tax waiver\",\"datePublished\":\"2023-04-27T21:03:28+00:00\",\"dateModified\":\"2023-04-27T21:10:23+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/high-court-blocks-revocation-of-ncba-tax-waiver\"},\"wordCount\":555,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/high-court-blocks-revocation-of-ncba-tax-waiver#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2023\/04\/postQueueImg_1682613216.80.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Kenya\",\"Kenya\"],\"articleSection\":[\"all news\",\"community\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/kenya\/all-news\/high-court-blocks-revocation-of-ncba-tax-waiver#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/high-court-blocks-revocation-of-ncba-tax-waiver\",\"url\":\"https:\/\/www.africa-press.net\/kenya\/all-news\/high-court-blocks-revocation-of-ncba-tax-waiver\",\"name\":\"High Court blocks revocation of NCBA tax waiver - 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