The exemption of CBA and NIC Bank merger from paying share transfer tax by suspended national treasury CS Henry Rotich has prompted Activist Okiya Omtatah to seek the help of the High Court in getting to the bottom of the matter.
Omtatah has filed a petition in matters of alleged abuse of Cabinet Secretay powers to exempt instruments under section 106 (1) of the Stamp Duty Act and the constitutional and legal validity of exempting the merged NIC and CBA Bank from paying share tax transfer.
In a legal notice that was made public a while back by Rotich, Cabinet Secretary for Lands and Physical Planning had directed that the instruments executed in respect of the transactions relating to the merger of NIC Group PLC and Commercial Bank of Africa shall be exempt from the provisions of the Act.
National Treasury had exempted the transfer of CBA shares into NIC Bank from paying stamp duty of one per cent of the worth of the unquoted stocks being transferred as the transaction is taking place through a share swap between the two banks. Transfer of unquoted shares like the CBA stock attracts stamp duty of one per cent, but the sale of quoted shares like NIC bank are exempted from the tax.O
Okiya added that his notice of application is extremely urgent and should be heard on the grounds given in support of his application