Evidentiary Value of Without Prejudice Communications

When a taxpayer communicates with the Kenya Revenue Authority (KRA) on a without prejudice basis, such communication cannot be admitted as evidence. In this case, the KRA sought dismissal on the grounds that the taxpayer had, without prejudice, agreed to pay certain taxes provided that penalties and interest were waived. The Tax Appeals Tribunal held that these communications were inadmissible, reinforcing the principle that without prejudice discussions cannot be relied upon as evidence in proceedings.