Here’s Our Truth: KRA Responds To Keroche Tax Saga

Keroche Breweries Limited was shut for failing to remit current taxes, the Kenya Revenue Authority (KRA) has said.

In a statement of Wednesday, the taxman said that Keroche Breweries Ltd has been accorded the opportunity to comply with the tax laws, but has severally failed.

According to KRA, the current closure is attributed to Ksh351 million owed by Keroche, which has accumulated since January 2021.

The taxman says that Keroche has been unable to account for excise stamps issued previously, the reason it could not be issued with new stamps.

“Collection of Excise Duty is through Excise Stamps issued to manufacturers depending on their volumes of production. The KRA does not issue excise stamps to manufacturers who have not accounted for the stamps previously issued through payment of taxes collected or until outstanding undisputed taxes are paid in full or an agreed payment plan is entered into and the same consistently honoured,” the statement read.

“The Taxpayer has been collecting taxes from consumers but not remitting same to KRA. The Taxpayer has not demonstrated any commitment to comply but has consistently failed to remit current taxes and also failed to honour the agreed payment plans.”

KRA revealed that Keroche had reneged on three agreements to pay taxes, both current and those awarded through court cases.

“By allowing any Taxpayer to continue collecting taxes and not remitting the same, KRA will not be executing her mandate of ensuring that taxes that fall due are remitted in a timely manner and that all taxpayers remit their fair share of taxes “Not a shilling more and Not a shilling less”,” added the statement.

Keroche is struggling to honour a Ksh9.1 billion tax obligation that has dragged through the courts since 2006. The amount entails Ksh1.2 billion relates to the HS Code for fortified wines and Ksh7.9 billion regarding Vienna Ice Vodka.

Read: Keroche Cry: Hundreds Set To Lose Jobs On Factory Closure

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