Economist David Ndii arrested for evading tax

Economist and NASA strategist David Ndii. FILE

The Kenya Revenue Authority (KRA) has opened a new court battle against international economist David Ndii over unpaid taxes.


KRA has moved to the High Court to appeal a decision of the Tax Appeal Tribunal to drop KRA’s pursuit tax money from the economist.


KRA sued Dr Ndii in December 2017 soliciting a total of Sh11, 395,591 originating from income tax estimated Sh8.4 million and another Sh2.9 million from VAT, activating a conflict at the tribunal.


The income tax conflict was settled in an out-of-court deal while the Sh2.9 million VAT lowered to Sh2.8 million.


However, the tribunal announced the VAT claim invalid since KRA had used the wrong procedure to notify Dr Ndii of his tax dues.


The legal dispute looks set to raise questions on the costs KRA will face, including legal fees, in its pursuit of the Sh2.8 million.


In March, the tribunal chaired by Josephine Maangi ignored the assessment by KRA and stopped the demand of Sh2,807,758.


In the ruling, the tribunal said that although Dr Ndii did not contest the assessment of the VAT, KRA had failed to notify him through writing, a mandatory requirement.


The tax assessment was carried out in September 2015 at a time when Dr Ndii had stepped up his criticism of the Jubilee administration and President Uhuru Kenyatta.