Lecture 12 Β· Savla would not say who his suppliers were
π»ππ πͺπππ πΉπππ: Accused of using fake invoices, a trader refused KRA's requests for his suppliers' addresses, contacts and payment records, calling them unreasonable. He won at the Tribunal and lost in the High Court and the Court of Appeal.
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The case
In early 2018 KRA assessed Savla, a Kenyan trader, for KSh 5.7m in additional VAT for September 2014 to December 2017. It alleged missing-trader fraud: the goods had not existed, the invoices had been bought, and the money paid to the suppliers had found its way back to him.
He objected in May 2018 with invoices, delivery notes and payment records. In June KRA twice asked for the supplier details, his financial records, bank statements and evidence that the goods had entered his business and been sold. He did not supply them, did not explain why he could not, and told KRA the request was unreasonable. In July KRA confirmed the assessment.
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Precursor is published by the FinTech Association of Kenya and exercises independent editorial judgement under the Editorial Independence Charter. This article is labelled Precursor Executive Classroom, which marks commercial material. Knowledge on Tax and financial judgement.
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