Kenya Revenue Authority has won a more than Sh2.2 billion tax battle with Africa Oil Kenya BV. The revenue body received the go ahead to collect the amount it is demanding from the company as unpaid VAT. KRA will collect Sh 2,293,334,065 from Africa Oil Kenya for the year 2011,2012 and 2015. In a judgment delivered last week, the High Court dismissed an appeal by the Africa Oil Kenya challenging the Tax Appeals Tribunal's decision which endorsed KRA’s demand. The court further noted that once the farm-out is complete, the interest reverts to Africa Oil Kenya who may consequently work out an agreement for revenue sharing with other party in the agreement.

Source: The Star December 05, 2022 19:20 UTC