The Kenya Revenue Authority(KRA) has moved to court to set aside a High Court order directing the re-opening of Keroche Breweries Limited.
The High Court on July 15 ordered KRA to open the Keroche Breweries plant in Naivasha pending the hearing and determination of a suit pitting the two parties.
KRA argues that the High Court order contravenes the initial order where Keroche had been given a repayment schedule to settle its tax arrears until the next hearing date on September 22.
“It is the Authority’s view that the case filed in Court by Keroche and the Orders sought go contrary to previous orders issued by the same Court and the consent agreements arrived at and signed by the two parties,” said KRA, Commissioner for Legal Services & Board Coordination, Paul Matuku in a statement.
KRA shut Keroche Breweries on May 15 after the Naivasha based brewer failed to honour a repayment plan that would have seen it settle Sh957 million shillings in 24 months.
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In its defence, Keroche said it was unable to honour the payment schedule given the tough operating environment and the short-run to the payment of the first installment covering the tax arrears.
The High court then struck a new repayment schedule which required the brewer to pay an initial Sh8 million as the first installment on the tax arrears and thereafter pay a similar amount on the 30th day of each month until the next hearing date.
SOURCES: Capital business
