Housemart Co Limited, a Chinese company has settled a sh2.2b in tax to KRA, in a deal that included a sh100 million payments upfront pending further assessment.
The company is an importer of a range of goods including construction materials and household commodities.
Housemart has filed a consent with the KRA at the High Court, which allows it to contest the outstanding tax as per the law.
The firm had moved to court after KRA froze its bank accounts demanding Sh2.2 billion tax arrears amid allegations that it was using seven other companies to divert funds to reduce its tax obligations.
“The consent …is hereby adopted as an order of the court. The (temporary) orders herein are accordingly vacated and the file is marked as closed,” ordered Justice Paul Nyamweya.
Also Read: Inspector General of Police Orders Arrests of two MPs allied to the Deputy President
In court documents, Housemart denied claims of misconduct and pleaded with the court to withdraw the freeze on assets as it was affecting its operations.
KRA agreed to withdraw all preservation orders issued to banks blocking the Chinese firm from transacting its accounts.
The firm, whose offices are located on Mombasa Road, claims that it has no links with the companies that received the cash on its behalf, noting that some of them are its suppliers.
The firms are Colila Limited, Akubi Limited, Nkemm Limited, Obeset Kenya Limited, Sunda (Industrial) Company Limited and Wise Databank Limited.