Former City Hall finance chief in tax deal with KRA
The Kenya Revenue Authority (KRA) has reduced a tax bill it was demanding from embattled former City Hall finance chief Jimmy Kiamba from Sh480 million to Sh16.9 million.
Mr Kiamba, who exited City Hall after it emerged that he was under investigation by the Ethics and Anti-Corruption Commission (EACC) for moving hundreds of millions of shillings through his multiple bank accounts, is also contesting in court the taxman’s Sh16.9 million demand.
The KRA has made the reduced tax demand on Mr Kiamba, his wife Tracy Mbinya Musau and a firm they co-own, Jimbise Limited, for arrears between 2010 and 2014, interest and penalties.
CHANGE IN TUNE
The fresh demand marks a third change in tune by the taxman as to how much is due from Mr Kiamba, his wife and their firm.
KRA in 2015 demanded Sh98 million, before reviewing the amount upwards to Sh262 million and later to Sh480 million.
Mr Kiamba in 2015 hit the headlines after the anti-graft watchdog (EACC) revealed in court that he had transacted over Sh400 million in nine months despite being on just Sh85,000 gross monthly salary as Nairobi City County’s chief finance officer.
The KRA soon began its pursuit of Mr Kiamba.
DECLARE AND PAY TAXES
The taxman sued Mr Kiamba in June 2015 for failing to fully declare and pay taxes in the preceding eight years despite having received more than Sh1 billion in his bank accounts.
Mr Kiamba’s accounts had a balance of more than Sh114 million when they were frozen during the 2015 hearing of the suit KRA filed against him.
Details of the downward revision of KRA’s demand to Sh16.9 million have been revealed in a suit the former City Hall CFO, his wife and Jimbise Limited have filed to stop the taxman from issuing agency notices to their bankers.
Mr Kiamba says in the suit that KRA’s 2015 demands were misconceived estimates based on the amounts transacted in his bank accounts and several high value properties he bought.
