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KRA Accuses Keroche Of Not Honoring Tax Payment agreements

by Radarr Africa
written by Radarr Africa

The Kenya Revenue Authority (KRA) has moved to court accusing Keroche Breweries of failing to honor tax payment agreements which informed the reopening of the brewer in July.

According to the taxman, after the reopening of Keroche breweries on July 29, the brewer declined to make good the payments as directed by the Court.

KRA says Keroche was to pay Sh8million on Aug 6, Sh8million on Aug 30 and current taxes worth Sh14.2million which to date they have not complied with. “Keroche Breweries Limited has been adamant in disregarding the court order of July 14 2022 notwithstanding that the order was issued in the presence of the counsel of Keroche Breweries Limited, the same was not and has not been complied with to date,” KRA’s application to the court read.

The taxman decried that despite issuing letters demanding for the payment of the taxes from Keroche on July 21, August 3, August 15, and August 24, the brewer has failed to comply with the order and pay any taxes as ordered or when they fall due. “Keroche Breweries Limited has now proceeded to decline to comply with their obligations under a tax law and due dates to accounting for tax being the end of the month, we have been unable to enforce the taxes while the brewer collects taxes from consumers and fails to remit the same,” said KRA.

KRA urged the court to address the case on a priority basis, or otherwise, the Respondent(Keroche) will continue to deliberately ignore the orders of the court jeopardizing its mandate, and frustrating its efforts of collecting taxes when they become due and payable.

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Further, KRA noted that if the orders sought in the application are not granted, the taxman risks suffering actual and imminent revenue losses and further may be cited for contempt itself. Justice Alfred Mabeya in a statement dated September 1 said the application is certified urgent and admitted to a hearing during the current Court Vacation.

Mabeya said the application would be responded to before the hearing on September 6. Keroche and KRA have been engaged in a tax impasse since May which has seen both parties move in and out of court after the taxman shut the brewer’s factory.

KRA said it shut the plant after the brewer failed to honour a repayment plan that would have seen it settle Sh957 million shillings in 24 months.

Owned by the Karanja family, Keroche previously linked its woes to a Sh351 million demand, but the KRA said the brewer owes the State more than Sh22 billion in unpaid taxes.

SOURCE: Capital business

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Banking, Finance & InvestmentNigeriaWestern Africa

GT Bank at Ebonyi state gets sealed over alleged non-payment of tax

by Radarr Africa
written by Radarr Africa

GT Bank in Abakaliki has been sealed by the Ebonyi State government over non-payment of tax.

According to the government, because of its inability to pay its tax to the government of Ebonyi state, the bank was sealed.

On Tuesday morning, Ebonyi state Internal Revenue Board Services Task force team visited the bank visited the bank and ordered its immediate closure.

Mr. Okoro Celestine, the leader of the team and head of Integrated Revenue, Ebonyi State Internal Revenue Board Service, stated that the bank had failed to respond to several demand notices since January to pay their accumulated tax. He also said the board had a court order which empowered it to seal the bank.

“This is not the first time we are coming here. Several demand notices have been served to them from January 14, 2022, to date, and we have a procedure, we don’t just come and seal. A court order has been granted for us to come and seal it. First demand notice was given to them. A reminder was also given to them but they refused. We don’t have any other option, we will not fight them other than to do the needful by seeking a court order to seal them”.

“We feel it is very necessary for it to be sealed today. We are not going to unseal it until they comply. We didn’t just start this journey today. It has been from January till date, which is seven months,” He said.

The manager of the bank declined when contacted to comment on the issue.

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EconomySouth Africa

SARS announces penalty for late tax payment in South Africa

by Radarr Africa
written by Radarr Africa

SARS, South African Revenue Service has announced the start dates and details for the 2022 tax season, with the tax authority warning of penalties for South Africans who fail to submit timeously.

From a taxpayer perspective, the importance of submitting tax returns, specifically within stipulated deadlines, is supported by the sanctions SARS can impose to the extent that these obligations are not complied with, says Tsanga Mukumba, an associate at Cliffe Dekker Hofmeyr.

Where taxpayers fail to submit returns by the relevant deadline, the South African Revenue Service (SARS) is under certain circumstances, empowered to issue an assessment of the amount of tax due and impose certain penalties, he said.

“For example, if a taxpayer fails to submit a return, section 95 of the Tax Administration Act empowers SARS to issue an assessment based on an estimate, using information readily available to SARS. Such an estimated assessment can only be challenged once the taxpayer has duly submitted the outstanding return,” he said.

“In addition to being able to issue an assessment which will result in the taxpayer being liable for amounts of tax, SARS may levy administrative non-compliance penalties under section 210 of the Tax Administration Act and understatement penalties under section 222 of the Tax Administration Act.”

Mukumba noted that SARS may impose an administrative non-compliance penalty when a taxpayer has failed to comply with their obligation to submit a return. These penalties are imposed for every month during which the non-compliance persists.

He added that the amount of the penalty is based on the taxpayer’s assessed loss or taxable income for the preceding tax year.

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“Where a taxpayer has an assessed loss, each monthly administrative non-compliance penalty may be R250, while where a taxpayer has taxable income of R50,000,001 or more, the penalty may be R16,000 per month.

“SARS is similarly empowered to impose an understatement penalty, where the non-submission of a return has prejudiced SARS or the fiscus and resulted in a shortfall.”

Mukumba said such a shortfall exists in circumstances where there is a difference between the amount of tax that would have been collected under a return submitted or outstanding, and the amount of tax that ought to be collected upon a proper application of the relevant tax legislation.

“The amount of the understatement penalty is determined based on the culpability of the taxpayer and ranges between 0% of the shortfall where the non-compliance is disclosed under the voluntary disclosure programme and 200% of the shortfall, where the taxpayer is guilty of intentional tax evasion.”

Source: Business Tech

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