NAIROBI, Kenya, Oct 2 – A local cigarette manufacturing firm is contesting a demand note of over Sh1.9 billion as taxes arrears.
Mastermind Tobacco (K) Ltd is contesting the amount which it claims has grown exponentially from Sh111 million for the period between April-July 2018.
The notice to pay the amount was sent to the firm 10 days ago, failure to which auctioneers have been directed to attach its assets.
The company contended that it has not made any sales during the three weeks during which the exorbitant amount is being demanded.
The company states that if the attachment is executed, its business will be permanently destroyed on the basis of unlawful and unreasonable demand for taxes that are not due.
It is now seeking orders prohibiting the respondent from demanding the amount pending determination of the suit.
The company insists that the amount should not be demanded until the respondent explains how it arrived at the amount from Sh111 million despite not making any sales.
Through its advocate, it states that its business will be irretrievably and catastrophically ruined since the auctioneer appointed by Commissioner for Domestic Taxes has proclaimed all its assets.
“Efforts to resolve the matter reasonably have not been successful as the respondent is unable to justify the astronomical sum demanded,” it pointed out.