Siemens Sues KRA Over Sh467 Million Tax Refund

Siemens, a German engineering and technology company, has taken legal action against Kenya Revenue Authority (KRA) in an attempt to obtain a Sh467.2 million tax refund that has been outstanding since 2022. The company has filed a judicial review case at the High Court, contending that KRA failed to process its refund application within the 90-day statutory period.

Siemens submitted its refund application on October 31, 2022, but KRA received it on November 1, 2022. The company seeks a court declaration that KRA's failure to process the application within the required timeframe was unlawful, unreasonable, and procedurally unfair. According to Section 47(3) of the Tax Procedures Act, Siemens argues that the refund was deemed to have been ascertained and approved on January 30, 2023.

The company is demanding an order compelling KRA to process and pay the refund, along with interest at a rate of one percent per month from December 1, 2024, until the refund is fully paid. Siemens also wants KRA to cover the costs of the case, as they claim that KRA's retention of the funds violates constitutional protections related to taxation and property.