The global food and nutrition company (GNLD) is facing a financial crisis after the revelation of tax evasion.
The Kenya Revenue Authority (KRA) has now ordered for the freezing of the company’s bank accounts after it emerged that it had under-valued its stock in the declaration of wealth.
The firm has now been put on the spot for paying less amount towards its tax requirements following the under-valued stocks.
KRA Debt Enforcement Manager Asha Salim has now asked the firm to comply with the tax requirements before it can continue with its operations.
“In exercise of the powers conferred upon me by Section 131 of the East African Community Customs Management Act, I hereby declare you to be agent of the above-mentioned taxpayer for the amount specified in this notice and require you to pay the Commissioner Customs Services Department the sum of Sh131, 371,095 being duties due by the above taxpayer,” reads a letter from KRA, as quoted by Standard.
The firm was also informed that it will be required to pay the said amount in parts until the debt is fully settled before it can get clearance at the end of the day.
The management of the firm is now brainstorming on the best way to address the matter to allow operations to resume with immediate effect.