The Kenya Revenue Authority (KRA) has defended its move to shut down Keroche Breweries Limited, stating that the firm consistently failed to honour payment plans agreed upon by the two parties.
In a statement dated Tuesday, March 8, the government agency noted that Keroche had reneged on the agreement made by the two parties for the Ksh351 million tax that was overdue.
KRA, however, stated that Keroche collected taxes from its customers but failed to remit the same on time.
"On the issue relating to Ksh351 million taxes due and prominently highlighted by Keroche Breweries Ltd as being the main reason that led to the recent closure of the premises, it is imperative to note that this is the principal tax which Keroche withheld for the period January 2021 to date and has not remitted the same to KRA.
"This means that Keroche Breweries Ltd has been collecting Excise Duty Tax and VAT from its consumers through the sale of its products but has not been remitting the taxes to KRA," read the statement in part.
KRA noted that as of December 14, 2021, the payment stood at Ksh279,958,530. The two parties had agreed to pay in instalments of Ksh20 million from January to October, Ksh30 million in the month of November and Ksh49 million in the month of December.
KRA, however, alluded that the firm only paid Ksh10 million and dishonoured the agreement.
"It is also important to note that these are self-assessed tax declared by Keroche Breweries Ltd in its monthly returns but not remitted. It can only mean that the Taxpayer may be using taxes collected to fund the company’s operations or for other private purposes."
"Payment plans were agreed with the Keroche with regard to current taxes and the taxes agreed under the ADR process," KRA stated.
The authority intimated that the first and second plans agreed in July 2021 and December 2021 were not honoured.
"Further in January 2022 Keroche requested for a review of the plan and the same was granted again in writing but still not honoured."
KRA noted that taxpayer information ought to be confidential but at times have to clarify information that may misguide the public.
