East Africa Legislative Assembly MP Simon Mbugua has alleged companies facing tax evasion cases could be subject to business rivalry.
On Friday, Mbugua cited examples of giant betting company Sportpesa and Keroche Breweries.
According to Mbugua, for three consecutive years(2016, 2017 and 2018), Sportpesa was given KRA Medium taxpayers category award. Later, Mbugua explained Kenya Revenue Authority imposed other taxes amounting to Sh10. 5 billion
"SportPesa has, however, cited a court order issued in 2014 that stopped deduction of withholding tax from winners’ cash. KRA has, however, held its ground, noting that it was never a party to the alleged suit and was never served any court order stopping the deduction of withholding tax to Pevans East Africa which owns sportpesa," he noted
On the other hand, Mbugua cited that Keroche was to be opened by former President Mwai Kibaki but 'wheeler-dealers who were associated with the late chairman of KBL Jeremiah Kereini were against it.'
Luckily, former Prime Minister Raila Odinga graced the function. Further, Mbugua cited Dalbit petroleum company whose account was frozen due to tax evasion as well.
"Am perturbed because all the three cases I have mentioned have similarities on how they have been handled by KRA notwithstanding the companies mentioned were tax compliant and awarded. Could it be a business rivalry? Could it be competitors fighting each other as the grapevine says? Nothing can be ruled out. " he questioned