In the year ended March, the amount was booked as miscellaneous income helping the company to grow its net income 27.1 per cent to Sh48.4 billion in the period. (Photo/business daily)
Kenya Revenue Authority (KRA) and Safaricom have resolved a tax dispute freeing up Sh2.2 billion that the telco had set aside to settle the potential liability.In the year ended March, the amount was booked as miscellaneous income helping the company to grow its net income 27.1 per cent to Sh48.4 billion in the period.In its latest annual report the company discloses that, “During the year, the group released accruals relating to principal and interest on tax matters with the Kenya Revenue Authority totaling to Sh2.2 billion upon resolution of the matter.”The cash formed the bulk of Sh2.5 billion “other income” in the review period, a major surge in the item that last peaked at Sh576 million in the year ended March 2015.The annual report also said, “This category includes income from disposal of assets and other miscellaneous incomes which include any one-off transactions not likely to recur in future” the company said in the report.Safaricom reckoned that it has other pending issues with the taxman, adding, however, that it does not expect to make a significant tax payment from them.“The company has outstanding matters with the Kenya Revenue Authority and various ongoing legal cases from trade and contractual disputes arising from normal course of business,” the company said.