The High Court in Machakos has today morning declared Section 12D of the Income Tax Act, the section that introduced Minimum Tax, unconstitutional for violating Article 201(b)(i) of the Constitution. The court noted that minimum tax was unconstitutional for subjecting taxpayers to double taxation and was punitive in nature. The Court was of the opinion that taxation cannot be fair when a system of tax is introduced to diminish the capital of a business.
The Kenya Revenue Authority respectfully disagrees with the findings of the Court and will prefer an appeal to the Court of Appeal to challenge this finding. This is to ensure that KRA continues to review and improve on tax policies in order to reduce the tax burden while ensuring that every citizen contributes their fair share of tax.
Commissioner for Legal Services & Board Coordination