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The Court of Appeal has issued directions on the hearing of an appeal by the Kenya Revenue Authority (KRA) against the decision of the High Court of 20 September 2021, declaring minimum tax unconstitutional (the Judgment).
On 28 September 2021, KRA filed an application at the Court of Appeal seeking orders to stay the Judgment pending hearing and determination of its appeal (the Stay of Execution Application). A stay of execution order, in this case, would have temporarily suspended the Judgment and therefore taxpayers would have been required to pay minimum tax pending determination of KRA’s appeal. Upon consultation with counsels for KRA and the Respondents, the Court of Appeal directed that the Stay of Execution Application be deemed as withdrawn in lieu of an expedited hearing of the appeal. The Court of Appeal also directed that the appeal be set down for hearing on priority basis.
ALN Kenya | Anjarwalla & Khanna continue to represent the Kenya Association of Manufacturers, the Retail Trade Association of Kenya and the Kenya Flower Council, the 2nd Respondents in the Stay of Execution Application and Appeal.
Effect of withdrawal order
The orders issued by the High Court of Kenya on 20 September 2021 declaring minimum tax unconstitutional and the minimum tax guidelines null and void remain in place until the appeal is determined.
We will keep you posted on the appeal’s further progress.