The Standard Group Plc is a multi-media organization with investments in media
platforms spanning newspaper print operations, television, radio broadcasting,
digital and online services. The Standard Group is recognized as a leading
multi-media house in Kenya with a key influence in matters of national and
international interest.
The High Court has halted the implementation of the minimum tax until all the petitions before the court is determined.
On Monday, the court granted conservatory orders restraining the Kenya Revenue Authority (KRA) from further implementing, administering and enforcing Section 12D of the Income Tax Act by collecting or demanding payment of the Minimum Tax pending the hearing & determination of the ongoing Petition.
In his ruling, Justice George Odunga stated that "it is my view and I find that this is an appropriate case for the 2nd Respondent (KRA) to 'hold its horses' for the time being as this Court navigates through the labyrinth of the respective contentions made by the parties herein..."
Justice Odunga further states that what drafters of the Constitution intended is that the Court in determining the Constitutionality of an enactment ought to adopt what I would call “the guided-missile” approach to target only the offensive parts of the Act.
Minimum tax was introduced under the Finance Act 2020 to be charged at the rate of one per cent of the gross turnover of a business starting January 1, 2021.