BlueBlox successfully appealed a post-audit demand at the Tax Appeal Tribunal of Kenya and set aside the demand notice that KRA imposed on our client to pay taxes in excess of $500,000.
Unfortunately, customs valuation issues do not always disappear once a shipment has been successfully cleared. In many countries, customs have the right to audit past shipments going back many years – and this can result in nasty surprises, similar to an issue our client in Kenya experienced…
BlueBlox’s client had been subject to a Customs post-clearance audit which resulted in a demand for ‘unpaid’ duties and taxes in excess of USD500,000. The Kenyan Revenue Authority (KRA) applied a valuation uplift on goods previously imported. In some cases, ‘unpaid’ taxes were more than 10 times higher than the original declared value. In conjunction with the client, BlueBlox lodged an appeal against the KRA’s decision at the Kenyan Tax Appeal Tribunal (TAT). During the appeal process, BlueBlox presented a wealth of evidence and justification refuting KRA’s uplift using both local and international customs valuation laws, while KRA had failed to provide any explanation to justify the uplifts applied. Based on our written and oral submission, the TAT set aside the demand for ‘unpaid’ duties and taxes in excess of USD500k from the KRA and ruled in our client’s favour.
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