KRA to recover KES125mn from Wananchi

Kenya Revenue Authority (KRA) is likely to recover over KES124.87 million (USD1.38 million) unremitted value added tax from Pan African pay-TV provider, Wananchi Group, says a media report. 

Wananchi had petitioned the Court of Appeal following the High Court’s decision in February 2013 which dismissed a case challenging the KRA demands. The group wanted Court of Appeal to temporarily stop KRA from recovering the unremitted tax pending appeal of the High Court decision.

In 2012, audit from KRA’s Commissioner of Enforcement had highlighted that the Group had not paid VAT for imported set top boxes and decoders. However, Wananchi Group argued that it had applied for tax remission from Minister of Finance between June 2007 and December 2011 for imported hardware and equipment. The remission issued by the Minister of Finance did not include spares and accessories.

The group has accused KRA has acted illegally and in excess of its jurisdiction. Wananchi Group has emphasised that the minister had granted tax remission under the VAT act and added that KRA had no power to challenge the decision by the minister.