The High Court in Nairobi has ruled in favor of the Kenya Revenue Authority (KRA) in a case filed by Choppies Enterprises Limited seeking to unfreeze their accounts pending resolution of an ongoing tax dispute.
Choppies had filed an application in Court under Certificate of Urgency. Seeking orders to unfreeze their accounts pending completion of an ongoing tax dispute.
KRA’s Authority moved to freeze Choppies’ bank accounts to secure taxes amounting to Kshs. 173,388,416.00. The move comes after the realization that the retailer was in the process of winding up business in Kenya.
KRA adduced evidence in Court to show that Choppies has already sold its branches, assets. And stocks to Tusker Mattresses Supermarkets, Chandarana Supermarkets Limited, Quickmart Supermarkets Limited, and Appmatt Limited.
The Court, in its ruling, found that KRA is right to freeze Choppies’ bank accounts to secure the taxes in dispute. The Court further held that KRA had provided undisputed evidence. Confirming Choppies had commenced disposing of its assets and winding up business in Kenya.
Choppies supermarket failed to state its financial position, including how much was in their accounts and what they were to earn from the sale of assets.
In conclusion, the Court found that Choppies should provide security for taxes payable to KRA. Since they are closing shop in the country.
Further, the Court gave Choppies and KRA 14 days to explore an amicable settlement of the tax dispute.