Keroche owners ordered to pay Ksh9 billion to KRA

Blow to Keroche Breweries after order to pay Ksh9 billion

Keroche owner Tabitha Karanja

Tax Appeals Tribunal has orders Keroche Breweries to pay over Ksh9 billion in taxes.

This directive was issued after Keroche lost a protracted dispute with the Kenya Revenue Authority.

In August 2019, Keroche owners were charged in court on suspicion of evading taxes amounting to Ksh14.4 billion.

Kenya Revenue Authority (KRA) has over the years been embroiled in a tug of war with the Naivasha-based brewer over tax computation method.

In a previous tussle, KRA ordered excise duty on Viena Ice paid at Ksh101.2 per litre while Keroche insisted on Ksh26.4 per litre.

Tax exemption

Director of Public Prosecutions Noordin Haji stated that Keroche had not submitted Ksh9.5 billion from Vienna Ice alone.

The audit by the KRA established that Keroche Breweries Limited had evaded the payment of tax totalling Ksh14,451,836,375.

I am satisfied that there is sufficient evidence and that it is in the public interest to charge the suspects with 10 counts of tax fraud,” said Haji.

The Tax appeal tribunal hears appeals filed against any tax decision made by the Commissioner.

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