Nairobi, July 6 -- The High Court has ordered the revival of a company that "died" six years ago to allow the Kenya Revenue Authority (KRA) pursue tax dues.

The court directed the Registrar of Companies to restore the registration of Bristol Estate Limited, clearing the way for the taxman to pursue the recovery of Sh475.8 million in taxes.

According to the court, holding that dissolution automatically extinguishes tax liabilities would create a perverse incentive structure.

"It would mean that companies could divest themselves of tax liabilities through dissolution and effectively obtain an extra-legal waiver of taxation," the court in Mombasa stated.

The judge observed that the money claimed by KRA accrued while the company was in ex...