MPs want KRA to disclose tax details of 12 liquor firms
A sign outside the premises of Two Cousins Distillers Limited in Thika. PHOTO | FILE | NATION MEDIA GROUP
What you need to know:
Legislators urge tax man to table records on tax paid by the firms between January last year and March 2020.
The 12 firms at the centre of the tax evasion claims got the bottle caps from international maker of spirits and liquors seals, Torrent East Africa Limited.
Parliament has directed the Kenya Revenue Authority (KRA) to table records on the taxes paid by 12 local firms that manufacture and import alcohol and are at the centre of tax evasion claims.
The MPs have asked the taxman to table the records on total tax paid by the firms for 14 months from January last year to March.
The firms are Zheng Hong Limited, Patiala Distillers, Elle Kenya, Mount Kenya Breweries, Crywan Enterprise, Vinepack Limited, FRM EA Packers, Platinum Distillers, Moon walk Investment Limited, Tihan Limited and Two Cousins Distillers.
EMPTY BOTTLES
The lawmakers allege that the 12 did not pay duty for over 200 million empty bottles of 250 millilitres that were imported and cleared by the taxman then re-filled with various alcoholic brands.
The probe casts the spotlight on staff at the taxman just a year after 38 KRA staff in domestic tax department and customs and border control were accused of helping to fraudulently clear cargo and altering tax returns to help people dodge tax payments.
“I hereby seek your directive to cause the departmental committee on Finance and National Planning to undertake an inquiry in the matter and table to the house on the following,” said Ruaraka MP TJ Kajwang’
“The total tax paid by the said firms between Jan 2019 and March 2020 and whether the firms are tax complaint and if not, why… Whether the said firms and or their directors have been involved in tax evasion in the past and if so what actions have been taken against them,” Mr Kajwang’ added.
IMPORTED BOTTLES
The taxman will also be required to avail details on the number of bottles imported by the firms, the number of bottle tops supplied to or imported by the firms and the amount of taxes paid.
The 12 firms at the centre of the tax evasion claims got the bottle caps from international maker of spirits and liquors seals, Torrent East Africa Limited.
Mr Kajwang’ added that the refilled bottles were then sealed with fake stickers from the Kenya Bureau of Standards (Kebs). Parliament has also ordered Kebs to table measures taken to curb the sale of the alcohol in the local market.
