KRA Now After Betika Over Sh1.75 Billion

In the latest dispute between bookmakers and the Kenya Revenue Authority (KRA), Shop and Deliver, the company that owns Betika wants KRA barred from enforcing a a Sh1.75 billion tax demand pending determination of the case where it is disputing the claim.

In documents submitted before the Tax Appeals Tribunal, Betika says that its financial operations risk being crippled and could signal job losses if the taxman is allowed to make the demand.

The taxman had written to KCB and Guaranty Trust Bank demanding Sh832.45 million from the lotteries and gaming firm’s accounts for four months to December 2018 and a further Sh587.63 million for the period between January and February this year. KRA is also demanding an additional Sh328.1 million in what it says are accrued penalties and interest after the betting firm failed to comply to the taxman demands. “The matter is pending Judgement at the Tax Appeals Tribunal,” KRA confirmed.

The taxman claims Betika started deducting 20 percent tax on customer winnings even as firms challenged the KRA directive. The taxman now wants the entire sum deducted from the bookmakers bank accounts pending determination of the appeal.

The decision to impose a 20% excise tax on all betting stakes has so far had irreversible effects with about 2,500 youths out of jobs after Sportpesa and Betin said the business environment has been harsh to them seeing the company and decided to close shop.