Siemens sues KRA over Sh467mn tax refund
The company wants the court to declare that KRA’s failure to determine the application within the required period was unlawful, unreasonable and procedurally unfair.
German engineering and technology firm Siemens has initiated legal action against Kenya's Revenue Authority (KRA) for a tax refund totaling Sh467.2 million. The company contends that the refund, which Siemens submitted on October 31, 2022, was not processed within the legally mandated 90-day timeframe. Siemens filed a judicial review case at the High Court, claiming that KRA's failure to determine the refund application in a timely manner was unlawful and procedurally unfair.
According to the company, the refund was approved under Section 47(3) of the Tax Procedures Act, effective January 30, 2023. Siemens seeks a court order compelling KRA to process and pay the refund, along with monthly interest at one percent per month from December 1, 2024, until the funds are fully paid. Additionally, Siemens requests reimbursement of legal costs associated with the case.
The company asserts that KRA's continued retention of the funds infringes upon constitutional protections regarding taxation and property rights.
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