The taxman has now refreshed its battle with gambling companies. In a new move, Kenya Revenue Authority (KRA) has warned that the deactivation of pay bill numbers belonging to resistive companies who have failed to remit the 20 per cent excise duty on every stake is oncoming.
Through a public notice communicated by the taxman on January 14, it stated that online operations by disobedient bookmakers is going to be suspended, just like the last year 2019.
“We will suspend the pay bill numbers and online operations of non-compliant bookmakers,” the taxman said.
The Finance Act 2019 saw the introduction of 20 per cent tax on all stakes placed by the gamblers. It displays it on their bet slips whenever they bet.
KRA also imposed 20 per cent tax on every winning. This took effect in July 2019.
These taxes are inclusive of 30 per cent corporation tax and 15 Percent betting tax.
However, four betters; Mr Eugene Mwanje, Robert Opana, Dennis Kimari and Moses Muiruri have since moved to court to prevent the ongoing 20 per cent taxation on all stakes. The case will be heard on March 20, 2020.
The decision to go to a court of law, on December 2019, was reached after the four accused the Parliament of initiating the bill without public participation.
Justice Weldon Korir who heard the case instructed the Attorney General, KRA and the finance ministry to file application ahead of the hearing of the case on March 20.