The Kenya Revenue Authority (KRA) has justified its actions against Keroche Breweries Ltd, claiming that the alcohol company has persistently failed to return taxes and adhere to agreed-upon payment schedules.
Here is what Tabitha Karanja of Keroche breweries had shared on her social media handles.
It’s been a minute. Here is my statement in regards to what is happening at @keroche_ltd:
I wish to start by commending the Jubilee Government for the commendable work done during its two terms…#Thread
— Tabitha Karanja (@TabithaKaranja) March 4, 2022
The taxpayer (Keroche), according to KRA, has been collecting taxes from customers but not remitting them to KRA.
it is imperative to note that this is principal tax which Keroche withheld for the period January 2021 to date and has not remitted the same to KRA. @OleItumbi @KRACare
— Kenya Revenue Authority (@KRACorporate) March 8, 2022
It is also important to note that 𝘁𝗵𝗲𝘀𝗲 𝗮𝗿𝗲 𝘀𝗲𝗹𝗳-𝗮𝘀𝘀𝗲𝘀𝘀𝗲𝗱 𝘁𝗮𝘅es declared by Keroche in its monthly returns but not remitted. It can only mean that the Taxpayer may be using taxes collected to fund the company’s operations or for other private purposes.
— Kenya Revenue Authority (@KRACorporate) March 8, 2022
The statement further noted that Keroche has now been accorded the opportunity to comply with the tax laws.
Keroche has been accorded the opportunity to comply with the tax laws. The Taxpayer has been collecting taxes from consumers but not remitting same to KRA. Has consistently failed to remit CURRENT taxes and also failed to honour the agreed payment plans. #KRAResponds
— Kenya Revenue Authority (@KRACorporate) March 8, 2022
According to KRA, this will cause market distortions, resulting in the death of tax-paying enterprises at the cost of non-paying businesses.
In the end, this will result in no taxes being paid and the loss of jobs when tax-paying firms close due to unfair competition from those who do not pay taxes.
𝐅𝐢𝐧𝐚𝐥𝐥𝐲 𝐚𝐧𝐝 𝐈𝐧 𝐜𝐨𝐧𝐜𝐥𝐮𝐬𝐢𝐨𝐧. allowing any Taxpayer to continue collecting taxes & not remit the same, KRA will not be executing her mandate of ensuring that taxes that fall due are remitted in a timely manner & all taxpayers remit their fair share of taxes
— Kenya Revenue Authority (@KRACorporate) March 8, 2022
Reactions from KOT
You are killing a local business that she started from Zero just because of that foreign Danish company? Stop this excuses! Nonsense! https://t.co/gd7bceIE8A
— Hon. Idris Bulle Mohamed (@BulleJR3) March 8, 2022
https://twitter.com/SamMacoha/status/1501183779221745672?s=20&t=sJZquyGPJPrDCkzBm08DdQ
https://twitter.com/Shitabule_N/status/1501183054676701187?s=20&t=sJZquyGPJPrDCkzBm08DdQ
Sasa mkifunga Keroche how are you going to recover the taxes? Will you employ those who will lose jobs? How will you get more taxes in future or you will overtax us? You exempt other entities from taxes but here negotiating a fair way to settle the tax amid a Pandemic is hard? https://t.co/49a0SlYkIY
— BRAVIN YURI (@BravinYuri) March 8, 2022
Ushenzi. Open @keroche_ltd, sit down with @TabithaKaranja and if you want, a 3rd party like @KAM_Kenya find a solution. Otherwise hii upuzi wacheni. https://t.co/hbnXpLCY5P
— Wanjohi Mwai (@mwairus) March 8, 2022
