How To Lift an Agency Notice Issued by The Commissioner Of Taxes

How To Lift an Agency Notice Issued by The Commissioner of Taxes

An Agency Notice is a notice in writing by KRA to banks holding deposits or debtors holding money on behalf of a tax payer, to pay an amount specified by KRA. Those issued with the Agency Notice(s) become agents of KRA, and their responsibility as an agent is to collect, declare and remit the taxes to KRA within the timelines given. 

To lift an Agency Notice(s), the taxpayer files an application for stay, by way of a Notice of Motion under a Certificate of Urgency before the Tax Appeals Tribunal/a court seeking several interlocutory reliefs, such as:

1. The Agency Notice(s) be lifted, vacated or set aside, and the Respondent whether by itself, its officers, employees, servants and/or agents, be stopped from taking any steps or other enforcement actions;
2. A conservatory order restraining the Respondent whether by itself, its officers, employees, servants and/or agents, from enforcing the Agency Notice(s);
3. A temporary injunction restraining the Respondent whether by itself, its officers, employees, servants and/or agents, from enforcing the Agency Notice(s); and
4. A stay and/suspension of the Agency Notice(s) pending hearing and determination of the application and/ appeal.

In the application, the Applicant could state the grounds of the application to be: 

1. The Agency Notice(s) are unlawful, unreasonable, unfair and in bad faith;
2. The Applicant will stand to suffer substantial loss and damage if the Agency Notice(s) are not lifted;
3. The issuance of the Agency Notice(s) denies the Applicant an opportunity to be heard on its position;
4. The Agency Notice(s) issued by the Respondent undermines the due process of the law and is an abuse of the administrative justice system; and
5. That the case is a proper case for granting orders for the stay of execution pending appeal since if the stay is not granted, the Respondent will proceed to enforce the Agency Notice(s) despite the judgment and render the intended appeal nugatory.
6. It is in the best interest of justice that the orders for stay of execution of the Agency Notice(s) be granted pending the hearing and determination of the Application.

By: MAUREEN MUTAI

For more insights pertaining to this matter, you can reach the writer at maureen@mmsadvocates.co.ke. You can also contact us at MMS Advocates, Lower Duplex Apartments, LOWER HILL ROAD, or email us at info@mmsadvocates.co.ke