Nairobi Securities Exchange (NSE) #ticker:NSE has revised its profits upwards by Sh5 million following the approval of a tax waiver by the Treasury.
Treasury cabinet secretary Henry Rotich in January approved a tax waiver of 32.5 per cent of the outstanding penalties and interest owed on corporate tax, withholding tax, PAYE and VAT for the years 2008 to 2011.
The self-listed bourse was required to pay the 62.5 per cent balance amounting to Sh14.5 million.
Sh19.5 million had been provided for in the prior year’s financial statements to cover the liability.
“The 62.5 per cent payment required of Sh14.5 million was paid in January 2017. A credit of Sh5 million has been written back to these financial statements as this matter has been fully settled,” shareholders were told Wednesday during the AGM in Nairobi.
The Kenya Revenue Authority (KRA) had carried out audits covering 2008 to 2011 and issued an assessment for additional tax payable, penalties and interest.
Subsequently an application for waiver that arose from the audit was lodged with KRA in September 2015.
The self-listed firm recorded a drop in revenue last year. “90 per cent of our revenue comes from levies. If the market goes down by a certain percentage it will automatically affect our revenue,” said NSE chief executive Geoffrey Odundo.
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Note: The results are not exact but very close to the actual.
