Kenya Revenue Authority (KRA) has been given green light to collect more than Sh158 million from betting form Betway.
Although a five-member tribunal agreed that the betting firm succeeded in its bid to quash the demand by the KRA, a computation of outstanding withholding tax on its net winning was not in accordance 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 to the gross payouts. The Tribunal, therefore, finds that Withholding Tax is due and payable by the appellant,” the tribunal ruled.
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The firm which trades as BlueJay Ltd partly, however, convinced the tribunal that it was out of order for KRA to demand PAYE on earnings of Kiprono Kittony, who had been hired by the firm as a consultant.
The taxman is demanding Sh4.8 million from the firm as PAYE remittance to Kitton, arguing that he was the firm’s director and not the consultant as alleged. The amount demanded by the KRA is the principal amount of Sh3.6 million.
Related:Â KRA Tightens Tax Collection Moving Services To Mpesa
