The Kenya Revenue Authority (KRA) has been allowed to collect more than Sh158 million from betting firm Betway.
Although a five member tribunal agreed that the firm partly succeeded in its bid to quash the demand by KRA, a computation of outstanding withholding tax on its net winnings was not in conformity with Section 34 of the Income Tax Act as it was in 2016.
The Kenya Revenue Authority (KRA) has been allowed to collect more than Sh158 million from betting firm Betway.
Although a five member tribunal agreed that the firm, which trades as BlueJay Ltd partly succeeded in its bid to quash the demand by KRA, a computation of outstanding withholding tax on its net winnings was not in conformity with Section 34 of the Income Tax Act as it was in 2016.
"According to the provisions of section 34 as at the period under review, the Withholding Tax should have been applied on the gross payouts. The Tribunal therefore finds that Withholding Tax is due and payable by the appellant," the tribunal ruled
The firm, however convinced the tribunal that it was wrong for KRA to demand PAYE on earnings of Kiprono Kittony, who had been hired by the firm as a consultant. KRA demanded Sh4.8 million from the firm as PAYE remittance to Mr Kittony, saying he was a director and not a consultant as alleged. The amount demanded was principal amount of Sh3.6 million.
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