Rongai Tiles & Sanitary Ware Limited v Commissioner of Domestic Taxes [2020] KEHC 9974 (KLR)
- Court
- High Court of Kenya
- Case number
- 9974
- Citation
- [2020] KEHC 9974 (KLR)
- Decided
- 6 August 2020
The court granted a stay of execution and further enforcement of taxes pending the hearing and determination of the appeal, on condition that the appellant provide a bank guarantee to the respondent.
Facts
The appellant, Rongai Tiles & Sanitary Ware Limited, appealed a decision from the Tax Appeal Tribunal dismissing its appeal. The respondent, Commissioner of Domestic Taxes, demanded Kshs. 410,093,385.00 for taxes, which the appellant claims would lead to its closure.
Issues
- Whether the court should grant a stay of enforcement of collection of taxes pending the hearing and determination of the appellant's appeal
- How to balance the rights of both parties and ensure the appellant's business remains a going concern
Reasoning
The court considered the substantial amount of taxes demanded and the potential impact on the appellant's business, especially during the COVID-19 pandemic. It balanced the rights of both parties and decided to grant a stay to allow the appeal to proceed.
Outcome
The court granted the stay of execution and further enforcement of taxes pending the hearing and determination of the appeal.
Orders
- A stay of execution and further enforcement of taxes be and is hereby granted pending the hearing and determination of this appeal on condition that the appellant provide a bank guarantee to the respondent from a suitable bank for Kshs. 800,000.00 within 45 days from the date hereof.
Remedies
- A stay of execution and further enforcement of taxes pending the hearing and determination of the appeal
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