KRA gives clarification on Keroche Breweries closure
By evans.maritim, March 8, 2022Kenya Revenue Authority now says the Keroche Breweries Limited collected Excise Duty Tax and VAT from its consumers amounting to Ksh351, 000, 000 and failed to remit them to the taxman.
In a clarification statement, KRA said the brewer declared the taxes in its monthly returns but did not remit the amounts.
“It can only mean that the Taxpayer may be using taxes collected to fund the company’s operations or for other private purposes,” KRA said.
The taxman further said the company withheld taxes from January 2021 to date and has not remitted the same to KRA.
“By 14.12.2021, this amount was standing at Ksh279,958,530 when by a letter dated the 14th December, 2021 Keroche offered to pay the debt by instalments of Ksh20,000,000.00 from January 2022 to October 2022 and thereafter Ksh30,000,000 for the Month of November, 2022 and Kshs. 49,958,530 for the month of December, 2022. Keroche only paid Ksh10,000,000 and dishonoured the agreement,” KRA added.
The revenue collector further said the brewer 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. Keroche has consistently failed to remit current taxes and also failed to honour the agreed payment plans,” KRA stated.
Keroche was closed last month.