The Kenya Revenue Authority (KRA) has defended its actions against Keroche Breweries Ltd saying the alcohol manufacturer has consistently failed to remit taxes and also failed to honour its agreed payment plans.
The Kenya Revenue Authority (KRA) wishes to thank the millions of Kenyans who continue to diligently pay their taxes as and when the taxes fall due. This demonstrates patriotism and the deepest sense of citizenship as we seek to achieve our shared prosperity as a Nation.
During the year 2020/21 Kenyans in their millions payed Kenya shillings 1.669 trillion in taxes exceeding the target by Kenya shillings 16.8 Billion. In the current financial year the nation is on cause to realize the projected Kenya shillings 1.882 Trillion. We must all be proud of this achievement. The achievement of these targets is largely attributed to economic recovery and diligent enforcement of compliance measures to ensure interdict tax evasion.
We continue to use technology and intelligence driven tax compliance strategies that largely rely on information obtained from third party databases and working closely with other law enforcement agencies.
The development of our country is a shared responsibility where citizens pay taxes in accordance with laws enacted by Parliament and administered by the Kenya Revenue Authority on behalf of the Kenyan people.
The Tax period, the Taxable persons, the determination of taxes and amounts payable, and the due dates for payment of taxes are all provided for in tax laws which are meant to be complied with by all taxpayers without exception. KRA is only an administrator of the laws that are enacted by the Kenyan people through their elected representatives in Parliament.
The legal framework for recovery of taxes that remain unpaid is also well articulated in the tax laws which also provide elaborate mechanisms of resolving disputes where taxpayers do not agree with the decisions taken by the KRA.
KRA is required to keep taxpayer information confidential at all times. Taxpayer information may however become public in certain circumstances including when such information is the subject of litigation before Courts and the Tax Appeals Tribunal which are public fora.
The taxpayer may also on his/her own volition put such information to the public. Where a taxpayer choses to do so, the KRA is left with no choice but to clarify any information provided by a taxpayer to the public which in the view of KRA is not correct and may misguide the public if left in the public arena without clarification. In doing so the KRA is careful not to comment on matters before courts and will always seek to only clarify the facts to correct any misreporting.
There has been various disputes between Keroche Breweries Ltd. and the KRA. Some have been resolved and taxes settled. There is however need to provide some facts with respect to the outstanding disputes to clarify information that the taxpayer has provided to the public through various channels.
Excise Duty tax regime
Excise Tax is a consumption Tax where the manufacturers of excisable goods collect the tax from consumers and are required to remit the same to the KRA on or before the 20th day of the following month. In the current case, Keroche Breweries Limited (Keroche) was required to collect Excise tax and Value Added tax (VAT) on various products and remit the same to the KRA as stipulated by tax laws.
Full reporting HERE
