Nyachoti & Co. Advocates wins Sh 1 million tax bill against Metro Petroleum Tanzania Ltd, 3 others

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Lawyer Philip Nyachoti at Milimani Law Courts on a previous date

The firm of Nyachoti & Company Advocate has won a tax bill of over Sh 1 million against Metro Petroleum Tanzania Limited and Premium Petroleum company limited.

This is after lawyer Philip Nyachoti moved to the High Court seeking to have Metro Petroleum Tanzania limited, Florence Chepkoech, Bill Kipsang Rotich and Premium Petroleum company limited pay Sh 1,056,229 as per the certificate of taxation dated 16th December 2020.

Justice Alfred Mabeya entered the judgment in favor of lawyer Philip Nyachoti compelling the firms to pay Sh 1,056,229 million as certificate of tax for instruction given to him to oppose proceedings for adoption of a foreign judgment rendered by the High Court of Tanzanian. 

“Accordingly, I find the application by the applicant ( Nyachoti & Company Advocates) is merited. I allow the application and enter judgment for the applicant in terms of certificate taxation dated 2nd July 2018 together with the cost of the application. A decree shall issue accordingly, ” ruled Justice Mabeya.

The judge was certified that Metro Petroleum Tanzania limited, Florence Chepkoech, Bill Kipsang Rotich and Premium Petroleum company limited failed to discharge the burden upon them that the monies had been paid and received by the Nyachoti law firm.

“It was not enough for the respondents to allege that the cash payment done was with the monies withdrawn via cheque from his personal account,” ruled the judge.

Nyachoti argued that the bill dated 2nd August 2018 was taxed on 4th December 2020 at Sh 1,056,229 where certificate of taxation of the said amount was subsequently issued on 16th December 2020 and the same has not been reviewed, set aside or valid.

The lawyer denied allegations by the respondents that they had paid him the whole amount with an excess of Sh 243,770/95. There was no dispute between them on retainer for the bill.

Kipsang however opposed the application by Nyachoti law firm contending that they had given instructions to him to oppose the proceedings for adoption of a foreign judgment rendered by Tanzania high Court.

They contended that the amount claimed and accessed by the taxing master had already been paid to the law firm. They claimed to have made cash payments totaling to Sh 1,100,000 and additional cheque payment of Sh 100,000. However, no receipts or acknowledgment thereof were issued to them.

The judge ruled that when a person makes payments and fails to demand for a receipt, such payments can not be accounted for by the tax authorities. “The payer in such a case is aiding and abetting an illegality. He is assisting the payee to avoid paying tax for such payments. That is obviously an illegality and the loss will fall whereit lies ” said the judge.

He confirmed that lawyer Nyachoti filed the bill of cost which was duly taxed at Sh 1,056,229 vide a ruling of 4th December 2020.