Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
In three of the Appeals, the contention was the manufacturing process of Vienna Ice Brand of Vodka/FILE

Kenya

More trouble for Keroche Breweries after court orders KRA to collect Sh9bn

In three of the Appeals, the contention was the manufacturing process of Vienna Ice Brand of Vodka/FILE

NAIROBI, Kenya, Mar 11 – Keroche Breweries has been ordered to pay the Kenya Revenue Authority Sh9 billion by the tax tribunal after losing six lengthy disputes filed between 2015 to 2017.

In three of the Appeals, the contention was the manufacturing process of Vienna Ice Brand of Vodka.

The brewer argued that Vienna Ice brand of Vodka was not a distinct product from Crescent Vodka since Vienna Vodka was produced by diluting Crescent Vodka a process that did not amount to manufacturing.

In the other three appeals, the contention was regarding classification of pineapple-based wines.

KRA relied on the Compounding of Denatured Spirits Act Cap 123 and argued that the process undertaken by Keroche Breweries was compounding within the meaning of the Act.

“Keroche Breweries Limited was involved in the compounding of spirit which amounts to manufacture within the meaning in Excise Duty Act, 2015 and Customs and Excise Act, CAP 472 (repealed)as such Vienna Ice was a distinct product for which Excise Duty was payable,” the tax tribunal said in its judgment.

KRA, however, did not escape unscathed.

The Tribunal faulted the Authority for levying interest and late payment penalties for the period the disputes were being litigated at the High Court and the Court of Appeal which had directed that the matters be heard at the Tax Appeals Tribunal.

Last year, the director of public prosecutions ordered for the arrests of the company’s directors Tabitha Karanja and Joseph Karanja in connection to allegations of evading taxes.

Advertisement. Scroll to continue reading.
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...

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

Coronavirus

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

Headlines

NAIROBI, Kenya, Mar 16 – The World Bank has given the Kenyan government USD 60 Million (Sh6.1 billion) to help combat the deadly coronavirus pandemic...