The Kenyan Revenue Agency, KRA is currently battling a tax dispute worth Sh12bn with Kenya Breweries. Chief of the reason for the tax disputes is on the heels of tax abandonment under President Uhuru Kenyatta’s Jubilee administration.
Documents from the KRA further prove that as of the end of the 2022/2023 financial year, Kenya Breweries Limited, KBL has owed the said amount in tax defaults to the tax authority.
To help you understand the disputes more in-depth, Taxmobile.Online has listed below the key highlights of all that you need to know about the ongoing dispute.
All You Need to Know About the Current Tax Faceoff Between KRA, Kenya Breweries
Kenya Revenue Authority (KRA) commissioner-general stated that KBL owes KRA Sh8.2 billion as tax assessment on remission from the Sh11.7 billion on Keg beer. The abandonment of this amount was revoked, and the matter is pending determination at the High Court.
KBL had paid KRA Sh3.5 billion between June 2015 and May 2016 as part of the total outstanding balance of Sh11.7 billion.
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Additionally, the KBL owes KRA Sh3.83 billion, which has been outstanding from July 2015 to June 2020. This matter is currently under appeal at the Tax Appeals Tribunal (TAT) and is undergoing an alternative dispute resolution (ADR) process.
The KBl and KRA have resolved tax cases relating to Sh194 million and Sh83.9 million through the Tax Appeal Tribunal, TAT and Alternative Dispute Resolution, ADR in the past.
The Tax Procedure Act stipulates that abandonment of taxes only applies when initiated and determined by the KRA commissioner-general, who will then refer the matter to the Treasury Cabinet Secretary for approval.
The Senate committee is investigating the decision by the Treasury and KRA to waive taxes on multinational firms during the final months of the Jubilee regime.