Nairobi, Feb. 4 -- A Nairobi restaurant has lost a bid to overturn a tax assessment after the High Court ruled that the law cannot assist a taxpayer, who files nil returns while failing to maintain statutory records to explain cash flows through its bank accounts.

The court dismissed an appeal by Avery Lounge Limited against the Commissioner of Domestic Taxes and upheld the Kenya Revenue Authority's (KRA) use of bank deposits to reconstruct income.

The decision sets a precedent for businesses that declare zero income while actively operating, yet fail to produce proper accounting records when challenged.

"A court cannot aid a taxpayer who, having failed to keep statutory records, seeks to rely on generalities and summaries to defeat a ...