Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
The suspects faced three counts of tax evasion. In the first count, the suspects while trading as Jihulay Lai commodities limited, jointly with others not before court, knowingly defaulted to remit Income Tax of Sh595, 363,478 in the year 2016./FILE

Kenya

KRA Files Appeal against Tax Appeals Tribunal Decision on the Betting Firms’ Case

NAIROBI, Kenya, Nov 11 – Kenya Revenue Authority (KRA) will challenge the Judgment of the Tax Appeals Tribunal (TAT) delivered on 6th November 2019 in favour of the Betting firms.

Seven Betting Firms filed Appeals before the TAT challenging KRA’s interpretation of the term “winnings” as was amended by the Finance Act 2018/FILE

They also contested KRA’s enforcement mechanism after it enforced collection of 20 percent Withholding tax on winnings by placing agency notices on the Betting firms’ accounts.

The Tribunal ruled in favour of the Betting Firms and found that the term “winnings” as defined at Section 2 of the Income Tax Act does not include stakes placed by a Punter and that if the legislation intended for winnings to include stakes-placed, it would have categorically stated so.

However, KRA disagrees with TAT’s decision for among other reasons, the fact that it departed from the decision by Justice Hatari Waweru’s in a Meru High Court Case in which the Learned Judge had found that there was no ambiguity in the interpretation of the term “winnings” as defined by the Income Tax Act. In arriving at its the decision, the TAT found that Justice Hatari Waweru’s decision was inapplicable hence not binding on it because it had not delved into the definition of the term “winnings”.

Further, KRA is aggrieved by the Tribunal’s finding that it had no legal backing in demanding Withholding Tax from the Betting Firms and the manner in which it had enforced collection of the tax.

KRA has commenced the appeal process by filing a notice of appeal which it did on 8th November, 2019.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...