Suraya Property Group has lost a KSh 3.5 billion tax dispute against the Kenya Revenue Authority (KRA).
According to TUKO, the taxman asked the real estate company to provide documents supporting selling of sale of Fourways Junction on Kiambu Road failure to which they will pay said amount.
According to KRA, Suraya which operates under Muga Developers constructed 756 units out of which 695 were sold at KSh 30 million each.
Justice David Majanja ruled in the favour of KRA, arguing that the company should have furnish the commissioner of domestic taxes with all the required documents.
“It is on this basis that the commissioner reaffirmed the earlier position on the additional assessments,” Majanja ruled.
The court heard that Suraya Group provide sale agreements for 330 units and not 695 that were developed.
In 2019, Suraya was put on the spot after some of their projects failed.
Investors said the projects were set to be completed in 2014, with the payment plan being in instalments.
It was after a series of unanswered emails that the aggrieved investors visited the Director of Criminal Investigations (DCI) to record their statements as well as pay a visit to the Suraya properties offices.
The High Court allowed Transnational Bank to auction a one-acre parcel of land on Kiambu Road that was to host the houses.
Justice Majanja dismissed the application by 14 investors who sought to block Transnational Bank from selling the land over a KSh 111.2 million.
The investors had paid Suraya a deposit to Suraya Group, who had promised to deliver apartments to the home buyers.
However, Justice Majanja said they failed to provide sale agreements between them and the developer- Suraya property Group, to help the court determine the nature of the proprietary interests in the property.
The Judge further said the bank had charged the property and its interest supersedes any other interest including the rights of the investors.
“In the absence of these agreements, which form the basis of the contractual relationship, I cannot say the Plaintiffs have established a prima facie case with a probability of success in relation to the registered interest of Transnational Bank,” Justice Majanja said.
