I & M Bank Wins KSh 231 Million Dispute Against KRA

I & M Bank branch PHOTO/COURTESY

I & M Bank has won a tax dispute against the Kenya Revenue Authority (KRA) after a confusion on the imposition of excise duty on financial services in August 2012.

I & M Group disclosed that the Tax Appeals Tribunal ruled in their favour in the KSh 231.22 million excise duty dispute for the period between January 2014 and September 2018.

“The matter was heard on February 16, 2021, and the tribunal ruled in favour of the bank on March 4, 2022,” I&M Group said.

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In January 2019, the taxman slapped I & M bank with a KSh 283.51 million tax demand but it was rejected by the bank’s directors who termed the figure erroneous.

Months later, in April, KRA lowered the tax demand to KSh 231.22 million but the bank challenged the demand at the tax tribunal.

As earlier reported on WoK, I & M Bank Group has reported a KSh 2.71 billion profit at the end of the first quarter of its 2022 fiscal year.

Billionaires Africa reported that the group’s profit increased by 44 percent from KSh 1.9 billion to KSh 2.71 billion in the first quarter of 2021.

Earning increased due to a 21 percent increase in net interest income from KSh 4.3 billion in March 2021 to KSh 5.2 billion.

The group’s earnings were also attributed to a 20 percent increase in fees and commissions and a 76 percent increase in foreign exchange trading income.

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Notably, the foreign exchange trading income increased from KSh 348.5 million in the first quarter of 2021 to KSh 612.8 million.

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