Former Nairobi Governor Dr Evans Kidero has been ordered to pay tax of over Sh400 million to the Kenya Revenue Authority (KRA). This is after he failed to prove that the funds were raised and used for campaigns as he vied for the Nairobi gubernatorial seat.
Audits established that the proceeds from Dr Kidero’s fundraisers were being deposited together with other business proceeds into his personal bank accounts.
High Court Judge David Majaja ruled that the burden of proof lay on Dr Kidero to demonstrate that the funds raised for campaigns were actually utilised for that purpose. And if so, it would not constitute taxable income.
On the other hand, if the money was retained or diverted to his own personal use, it would be taxable income to him and liable to income tax.
Credit: Source link