Tyre firm Sameer subsidiary faces Sh144m tax demand

A subsidiary of tyre distributor Sameer Africa is facing a Sh144 million tax demand.

The company reveals in its annual report for the year ended December 2022 the unnamed subsidiary is facing two assessments from the taxman but the firm had raised an objection against the tax charge.

The firm said should the appeal be rejected, the firm will be forced to pay additional tax, interest and penalties estimated at Sh144 million.

“Based on legal and tax advice, the directors believe that the defence against the action will be successful,” the report stated.

Sameer Africa further revealed that the company has several ongoing legal cases estimated at Sh38 million.

The company recently revealed that it is seeking to raise Sh879 million from the sale of 3.75 acres amid liquidity challenges.

Sameer Africa has its presence in Kenya, Uganda, Tanzania and Burundi.

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Editor's note:The story has been revised to indicate that the tax demand has been made by an unspecified revenue authority in one of the markets Sameer Africa operates. An earlier version of this story had stated Kenya Revenue Authority.