Can Treasury Grant a Tax Exemption

In September 2021, London Distillers (LDK) received a tax waiver from the Treasury, allowing them to pay only 20% of their tax arrears. However, the Kenya Revenue Authority (KRA) demanded the full amount from LDK after reviewing the decision. This led to a court case in which the judge ruled that the Treasury had overstepped its mandate and abused its power by granting the tax compromise, as only the Commissioner can invoke the provision for tax abandonment. Despite LDK's request for a stay pending appeal, the disputed judgment could not be stayed, and full payment was demanded.