A Chinese national want a court to block police from arresting him for allegedly ot paying almost Sh400 million in taxes for four companies.
Zhao Guohui wants KRA and the police restrained from arresting him pending determination of his case.
He also wants the court to suspend KRA'sdeparture prohibition order against him, meaning he cannot leave Kenya without clearing the debt.
Zhao claimed KRA has issued payment demands for unpaid taxes of Sh398,939,620, being unpaid VAT and corporation tax by four companies allegedly affiliated to him.
He said he learnt the commission had issued a departure prohibition order against him, thereby denying him the right to freedom of movement contrary to law.
Zhao denies being the director of the companies. He argues that a departure prohibition order should be issued against a director or shareholder who is a controlling member of a company. That was not the case so the order violated Section 45 of the Tax Procedures Act.
He says he has learned that KRA has directed the police to arrest him with a view to investigate and commence criminal proceedings against him.
“Despite having made my statement, KRA has failed, refused or neglected to consider my explanation and I have never received any response after that,” court documents read.
Zhao says KRA has been demanding payment of the tax "despite not having issued and served assessment notices to Solcomms Ltd, Surekha Ltd and Pride Investments Ltd in accordance with the Tax procedures Act 2015.
He argues that failure by KRA to issue the assessment notices and amended notices to the companies and their director, including himself, was a violation of the right to fair administrative action.
