NAIROBI, Kenya, Jan 13 – The High Court has ordered Thomas De la Rue who owns the De La Rue Currency and Security Print Company to pay Sh1.1 billion in taxes to the Kenya Revenue Authority (KRA), revoking an appeal by the firm not pay.
De La Rue Currency and Security Print Company had filed an appeal to challenge a previous ruling by the Tax Appeals Tribunal (TAT) which said the company could not offset royalties paid to its parent company De La Rue International as an allowable expense under Section 15(1) of the Income Tax Act.
The company which is registered and earns income in Kenya had signed a contract with the Central Bank of Kenya (CBK) to print currency.
According to a statement from KRA Commissioner Legal Services and Board Coordination, the company had disputed that it paid royalties to De La Rue International for services rendered to it and therefore no taxes were due on its income.
KRA told the court that the company had entered into a contract with CBK and it bore significant risk in the contract.
The Authority explained that there were no Intellectual Property Rights arising to warrant payment of royalties.
The High Court revoked the ruling by the Tribunal on the basis that the appeal was lacking in merit and there was no evidence to persuade it to overturn the Tribunal’s Judgment.
