Kenya: Kenya Revenue Authority moves to court accusing Keroche Breweries of failing to honour tax payments

The Kenya Revenue Authority (KRA) has moved to court accusing Keroche Breweries of failing to honour tax payment agreements which accompanied the reopening of the brewer in July, The Star reported on September 1.

According to the taxman, after the reopening of Keroche breweries on July 29, the brewer declined to make good the payments as directed by the Court.

KRA says Keroche was to pay Sh8million on Aug 6, Sh8million on Aug 30 and current taxes worth Sh14.2million which to date they have not complied with.

“Keroche Breweries Limited has been adamant in disregarding the court order of July 14 2022 notwithstanding that the order was issued in the presence of the counsel of Keroche Breweries Limited, the same was not and has not been complied with to date,” KRA’s application to the court read.

The taxman decried that despite issuing letters demanding for the payment of the taxes from Keroche on July 21, August 3, August 15, and August 24, the brewer has failed to comply with the order and pay any taxes as ordered or when they fall due.

“Keroche Breweries Limited has now proceeded to decline to comply with their obligations under a tax law and due dates to accounting for tax being the end of the month, we have been unable to enforce the taxes while the brewer collects taxes from consumers and fails to remit the same,” said KRA.

KRA urged the court to address the case on a priority basis, or otherwise, the Respondent (Keroche) will continue to deliberately ignore the orders of the court jeopardizing its mandate, and frustrating its efforts of collecting taxes when they become due and payable.

Further, KRA noted that if the orders sought in the application are not granted, the taxman risks suffering actual and imminent revenue losses and further may be cited for contempt itself.

Justice Alfred Mabeya in a statement dated September 1 said the application is certified urgent and admitted to a hearing during the current Court Vacation.

Mabeya said the application would be responded to before the hearing on September 6.

Keroche and KRA have been engaged in a tax impasse since May which has seen both parties move in and out of court after the taxman shut the brewer’s factory.

KRA said it shut the plant after the brewer failed to honour a repayment plan that would have seen it settle Sh957 million shillings in 24 months.

Owned by the Karanja family, Keroche previously linked its woes to a Sh351 million demand, but the KRA said the brewer owes the State more than Sh22 billion in unpaid taxes.

05 September, 2022