Section 43 of the Tax Procedures Act

In this regard, therefore, KRA was under a duty to satisfy the Court that the twin conditions set out in section 43(1) of the Act had been met. These are; that the Commissioner was under a reasonable belief that there was tax due and unremitted and, that the interested party was likely to frustrate the recovery thereof. This court has to consider the likely peril that may be suffered in the event that KRA is ultimately found to be right. The tax alleged to be due is hefty. The interested party is also a running corporation. Weighing the interests of both parties and in the scales of justice, I grant the alternative prayer. Let security amounting to Kshs. 20 million be given to KRA for the discharge of the interim orders in force.