A recent High Court decision has bolstered Kenya's fight against tax evasion, upholding a significant portion of a Sh773 million tax assessment against a construction company involved in a "missing trader" scheme.

• The ruling sends a clear message against complex tax evasion schemes like "missing trader" fraud, where suppliers charge VAT but disappear without remitting it.
• The dispute involved allegations that the company claimed fraudulent input VAT refunds, failed to declare employee benefits, and couldn't explain millions of shillings in bank deposits.
• The Court rejected the company's argument that it wasn't responsible for the compliance status of its suppliers, establishing a crucial precedent for due diligence in commercial operations.
• The High Court stressed that tax compliance requires "verifiable footprints" beyond just invoices, demanding documentation like delivery notes, purchase orders, and transport records for large transactions.