EASTERN AFRICA - The Africa Tax Review

30% Tax Prepayment Required for Uganda Tax Appeals

March 13, 2025March 13, 2025 - by Jeremiah Amosu - Leave a Comment

The new tax prepayment requirement is set to take effect on March 11, 2025. In a bid to enhance tax compliance, the Uganda Revenue Authority (URA) has introduced a new …

EASTERN AFRICA

Kenya Grants Ksh 140 Billion Tax Amnesty to Ease Compliance Burden

March 3, 2025March 3, 2025 - by Jeremiah Amosu - Leave a Comment

The Kenya Revenue Authority (KRA) has announced a significant tax relief under its ongoing Tax Amnesty Program, waiving Ksh 140 billion in penalties, interest, and fines. This initiative is aimed …

EASTERN AFRICA

Addis Ababa’s Revenue Surges 800% in Seven Years Without Tax Hike

February 20, 2025February 20, 2025 - by Jeremiah Amosu - Leave a Comment

Mayor Adanech Abiebie has announced a staggering eightfold increase in Addis Ababa’s revenue over the past seven years, attributing the growth to improved tax administration and compliance rather than tax …

EASTERN AFRICA

Rwanda Announces Major Tax Increases for 2025 Fiscal Year

February 19, 2025February 19, 2025 - by Jeremiah Amosu - Leave a Comment

The Rwandan government has unveiled a series of tax hikes set to take effect in the 2024/25 fiscal year, targeting multiple sectors to boost revenue and align with economic policy …

British American Tobacco Kenya (BAT Kenya) has denied claims of financial discrepancies amounting to KSh 9.6 billion (US$ 93 million) following a recent investigative report that scrutinized the company’s tax records. The report, titled Missing Millions: A Cross-Examination of British American Tobacco Kenya’s Tax Bill, was published by The Investigative Desk in collaboration with the Tobacco Control Research Group (TCRG) and Tax Justice Network Africa (TJNA). According to the findings, BAT Kenya may have underreported revenue between 2017 and 2018, potentially leading to a tax shortfall of approximately US$ 28 million. Allegations of Tax Discrepancies The report is based on an in-depth analysis of BAT Kenya’s financial disclosures over six years. Researchers cross-examined the company’s annual reports with production records submitted to the Kenya Revenue Authority (KRA), internal government documents, and market data on cigarette consumption and pricing. Investigators allege a gap of KSh 9.6 billion between BAT Kenya’s declared revenues and estimated earnings based on production and sales data. This shortfall suggests that millions of cigarette packs may have been either unaccounted for or underreported, raising concerns about possible tax avoidance or evasion. “This report should be a wake-up call for Kenyan authorities. If these discrepancies remain unexplained, they could indicate potential tax manipulation,” said Kennedy Waituika, a fraud and internal audit expert. Kenya Updates Tax Exemption Rules for Charitable Organisations BAT Kenya’s Response In a statement, BAT Kenya’s Managing Director, Crispin Achola, dismissed the allegations, asserting that the company fully complies with Kenya’s tax laws and financial reporting standards. “We have thoroughly reviewed the report and found it to be largely speculative, containing numerous errors and misrepresentations of BAT Kenya’s operations,” Achola stated. He emphasized that as a publicly listed company on the Nairobi Securities Exchange, BAT Kenya adheres to strict financial disclosure requirements and publishes audited financial statements in line with both local regulations and international reporting standards. Claims of Miscalculations BAT Kenya further criticized the report, arguing that the authors relied on incorrect assumptions when calculating the company’s revenues, profits, and tax obligations. The company claims the report failed to consider deductible costs, applied incorrect cigarette pricing, and disregarded applicable trade margins. Growing Scrutiny on Tobacco Industry Taxation The allegations come at a time when governments worldwide are increasing scrutiny on the tobacco industry’s tax practices, particularly in low- and middle-income countries. Tax experts argue that multinational tobacco firms often employ complex corporate structures and transfer pricing mechanisms to minimize tax liabilities, depriving governments of much-needed revenue for public health initiatives. As the debate continues, the findings of the report may prompt further investigations by tax authorities and policymakers into BAT Kenya’s financial practices. The outcome could have significant implications for corporate taxation and regulatory oversight within Kenya’s tobacco industry.

EASTERN AFRICA

BAT Kenya Refutes KSh 9.6 Billion Tax Discrepancy Allegations

February 18, 2025February 18, 2025 - by Jeremiah Amosu - Leave a Comment

British American Tobacco Kenya (BAT Kenya) has denied claims of financial discrepancies amounting to KSh 9.6 billion (US$ 93 million) following a recent investigative report that scrutinized the company’s tax …

EASTERN AFRICA

Kenya Updates Tax Exemption Rules for Charitable Organisations

February 13, 2025February 13, 2025 - by Jeremiah Amosu - Leave a Comment

Kenya has announced that the new Income Tax Exemption Rules for Charitable Organisations have officially taken effect a year after they were first introduced. “The government notifies taxpayers of the …

EASTERN AFRICA

Supreme Court of Mauritius Clarifies Partial Tax Exemption on Interest Income

February 6, 2025February 6, 2025 - by admin - Leave a Comment

Originally published by Bowmans Law Firm. In a significant ruling for the Mauritian tax landscape, the Supreme Court has overturned a previous decision by the Assessment Review Committee (ARC), providing …

EASTERN AFRICA

ZRA Achieves Record 81bn Revenue Collection in January 2025

February 6, 2025February 6, 2025 - by admin - Leave a Comment

The Zanzibar Revenue Authority (ZRA) has set a new record in revenue collection, gathering 81.512bn/- in January 2025. This figure surpasses its target of 80.984bn/- and reflects an efficiency rate …

EASTERN AFRICA

Uganda Government Seeks Tax Waiver Extension for Bujagali Hydro Power

February 5, 2025February 5, 2025 - by Jeremiah Amosu - Leave a Comment

The Ugandan government has presented the Income Tax (Amendment) Bill, 2025 to Parliament, proposing an extension of the tax exemption for the Bujagali Hydro Power Project until June 30, 2025. …

EASTERN AFRICA

Kenya Prolongs Tax Amnesty Programme to Mid-2025, Expands Coverage

February 3, 2025February 3, 2025 - by admin - Leave a Comment

Kenya Prolongs Tax Amnesty Programme to Mid-2025, Expands Coverage. In a strategic move to bolster tax compliance, Kenya has extended its tax amnesty initiative by six months, now concluding on …