Kenya's betting giants SportPesa agreed on a deal with government that will enable it to resume operations after nearly four months of absence.
SportPesa and a number of firms had their licenses not renewed by Betting Control and Licensing Board over disputed taxes that ranges in a wide period.
But on Tuesday, the firm ended negotiations with KRA, effectively ending the stalemate that almost saw it locked out of the lucrative business.
According to insiders, the company will now pay significantly little tax arrears and the payment is spread out for a period of years. Also, 20 per cent of winner's money will be held back.
An official privy to the details of the agreement confirmed that the amount owed would be settled in full, indicating the huge concessions made by Sportpesa owners who have silently been chasing the clearance.
“They have committed to settle the amounts but asked KRA to spread payments over several years,” said the official.
KRA confirmed the agreement but formally refused to provide the details, citing client confidentiality since the company was a taxpayer just like any other individual.
“The Kenya Revenue Authority is bound by law not to reveal tax affairs of an individual or a company. The information is treated as confidential under Section 6(1) and (2) of the Tax Procedures Act and Section 125 of the Income Tax Act and same are held as such,” the agency said in a statement.
KRA also added that tax clearance is a requirement to be tax compliant in order to get regulatory approvals or conduct business with government.
“It is on this basis that Betting Control and Licensing Board requires tax compliance from gaming operators for renewal of licences. To date, 14 out of 34 operators have complied with tax laws,” the statement added.