BY SAM ALFAN.
Kenya Revenue Authority (KRA) boss James Mburu contempt application filed by Keroche Breweries over the failure to reopen the factory as directed by the court should be directed to junior employees at the authority.
In response to the application filed by the Naivasha based brewery, Mburu said tax issues including the administration of domestic taxes of, corporation tax, VAT, excise tax, withholding tax and income tax is done under Domestic Taxes Department which is ended by a commissioner.
Mburu denies being involved in the day to day management and directions of the department.
He however said he gives strategic directions to the head of departments.
The KRA commissioner general cited the challenges of implementing the directive by referring the court to the history of the dispute.
Mburu accused Keroche Breweries for failing to pay current taxes as directed on July 14, 2022 as a condition for reopening the plant.
“In the absence of deliberate and intentional violation of the court order and KRA act of maintaining closure of the Keroche Breweries premises cannot be said to have been geared toward’s lowering the court’s dignity , repute or authority as the applicant has not complied with the court to facilitate reopening,” adds Mburu.
He adds that by allowing Keroche Breweries to continue collecting taxes and not remitting the same , he will not be executing his mandate of ensuring the taxes that fall due are remitted in a timely manner and all taxpayers remit their fair share of taxes.
He further said reopening on the basis that 400 Kenyans will lose their jobs and livelihood while failing to pay taxes amounts to giving undue advantage to the company over other taxpaying business who diligently pay their taxes.
“It is to introduce a distortion in the market that will end killing those tax paying businesses. Employment will thus be lost when tax paying business close down due to unfair competition from those collecting and not remitting,” Mburu adds.
According to Mburu, KRA’s engagement with Keroche Breweries demonstrates that it has been on numerous occasions accorded support and opportunity to keep it afloat and continue trading but the company remains uncooperative and refuses to pay it’s share of taxes.
The company’s CEO Tabitha Karanja yesterday confirmed receiving a letter from KRA informing them the company will be denied entry today.
KRA letter to Keroche came hours after Justice Abigail Mshila declined to accord KRA audience.
Efforts by KRA who were represented by lawyer G. Ochieng to plead with the judge to hear them failed to bear fruit.
