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Good News For Keroche Breweries

DickensNgicho 06/25/2020

Keroche Breweries limited has had a reprieve after the taxman directed the company to pay Sh100m million to stop the latter from attaching its accounts following a Sh9.1 billion tax dispute. The Kenya Revenue Authority was set to attach the brewer's account for failing to pay Sh500 million tax.

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The company was supposed to pay the amount within 45 days as ordered by the court. While making the ruling at the Court of Appeal, a three judge bench ruled saying, “Taking all the relevant factors into consideration, including the challenging economic circumstances the Covid-19 pandemic has put the country and indeed the entire world under, we are inclined to grant a conditional stay of execution."

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The court made a statement by mentioning that the stay of the execution is made conditional upon the company's ability to pay KRA Sh100 million within 45 days from today June 25, 2020 which is the date the judges made the ruling. If they company will fail to meet this condition by way of the said orders lapsing, the application by Keroche will stand dismissed.

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Early in the year, Keroche Breweries had moved to court after an alarm that Kenya Revenue Authority would attach its financial accounts after they failed to pay half a billion of taxes. The company CEO Tabitha Karanja told the courts that the novel coronavirus disease pandemic has grounded several businesses including the alcohol selling outlets, bars and restaurants which affected the brewer's sales a great deal.

The company also owes several banks like former Barclays (now Absa) and it says it can't borrow anymore to pay the high taxes. The case is set for hearing on Monday. Tax Procedures Act gives KRA the authority to freeze the transactions of property belonging to tax cheats.

The brewer will have to make haste and pay the Sh100 million shillings before KRA goes after it again. 

Source: opera.com
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