Ke***** Breweries has obtained ***********s temporarily stopping the Kenya Revenue Aut**rity (KRA) from shutting down its business following its refusal to renew it excise tax licence for the current financial year.
The taxman had written to the brewer ordering it to cease manufact****g as it was unlicensed, a move that would have stalled its operations. KRA accuses Ke***** of stating incorrect duty rates while filing returns, which it claims has den*** it huge sums of money.
The brewer is also accused of not attaching copies of its tax compliance certificate and t**se of its directors while applying for the licence renewal. Ke***** has asked the court to quash the directive and compel KRA to issue it with an excise licence.
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Justice George Odunga ordered KRA not to implement its directive pending determination of the case and also asked Ke***** to file a substantive motion on its request for an excise licence within 14 days. “Leave so granted herein shall operate as a stay of the decision contained in the letter dated 14th July, 2015 pending hearing and determination of the said motion or until further orders of this court,” the judge said.
The case comes up for hearing on September 22. The ***********, issued on Thursday, came a day before the aut**rity published a list of licensed manufacturers and importers of excisable goods in a schedule that did not include Ke*****.
Excisable goods include beer, spirits, polythene bags, ******* products, juices, bottled water and soda among others. KRA’s schedule, which included Kenya Breweries Limited, ***ned unlicensed firms against continuing with business while also informing retailers and consu**** that it is ******* to possess them.
“Ki***y note that it is an offence…to be in the possession, purchase, or consume excisable goods manufactures or imported or sold by unlicensed persons,” KRA said in the public notice. “All manufacturers, w**lesalers, retailers, other outlets and consu**** are informed that the manufacture or possession of unexcisable goods cons***utes an offence.”
Ke***** moved to court last Wednesday seeking to compel the taxman to reverse its decision, **lding that KRA was yet to issue it with tax compliance certificates at the time it appl*** for renewal of the licence. The brewer added that its directors are separate legal en***ies hence asking for their tax compliance certificates is *******.
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