University sues revenue agency in tax arrears row
A motorcyclist rides past Great Lakes University of Kisumu. The university has sued Kenya Revenue Authority for freezing its bank accounts due to Sh95 million in tax arrears. PHOTO | FILE | NATION MEDIA GROUP
What you need to know:
Lack of finances has led to the postponement of the university's graduation more than twice and other activities.
The accounts were opened for a while, but on June 25 this year, the university received copies of letters instructing its banks to credit the institution’s accounts with tax arrears.
Vice-Chancellor Atieno Amadi she reached out to KRA Kisumu Domestic Tax Department with a view to work out a plan for paying the arrears.
Great Lakes University of Kisumu has sued Kenya Revenue Authority for freezing its bank accounts due to Sh95 million in tax arrears.
The fate of over 1,000 students is now in limbo after various activities were affected by the accruing debts owed to various service providers, including over Sh200 million owed to Chase Bank.
Lack of finances has led to the postponement of the university's graduation more than twice and other activities, including payment of salaries for over 278 employees, have been affected.
According to Vice-Chancellor Atieno Amadi, the bank accounts were frozen on November 20 last year over non-payment of tax arrears.
'DEATH SENTENCE'
The accounts were opened for a while, but on June 25 this year, the university received copies of letters instructing its banks to credit the institution’s accounts with tax arrears.
“Employees have gone without full salaries since January. In all these months, employees, including myself, have had to go home with half of their salaries because we can’t access our accounts and we have huge debts,” said Prof Amadi.
In a letter written on the same day the accounts were closed, the university asked KRA to agree to a payment plan of Sh1 million per month. “KRA is giving us a death sentence. As much as we have gone to court, we are still trying to talk to them to come up with ways in which we can sort out the matter,” said Prof Amadi.
SH117 MILLION
The case is set to be mentioned on July 30.
The VC has absolved herself from blame, saying when she joined the university on March 1, 2016, she found a financially struggling institution.
She said that within three months she reached out to KRA Kisumu Domestic Tax Department with a view to work out a plan for paying the arrears.
The arrears had risen from Sh35 million in 2014 to Sh75 million as at June 2016. After an audit, the tax man revealed that the university owed them Sh117, 727, 990 as tax arrears.
The amount comprised Sh116 million and Sh926, 906 as Pay as You Earn (PAYE) and withholding tax respectively.
ABUSE OF OFFICE
The university management and the Senate led by the VC revealed the issues facing them at breakfast press briefing on Wednesday where they were reacting on many other allegations levelled against the institution.
The queries according to Deputy Registrar in charge of academic affairs Mr John Kokwaro forced them to meet as the college management and form a technical team that would clear the air on the claims.
The VC had been accused of abuse of office after it emerged she was hiring her car at Sh3, 000 per day. She is also said to have gone with the same vehicle for a trip to Tanzania for 10 days at a cost of Sh14, 000 per day.
“The choice for a vehicle to Tanzania was cheaper as opposed Sh135, 000 if the VC had travelled on air,” said Mr Kokwaro.
Prof Amadi also denied arbitrary dismissal of staff and that she was supplying the college cafeteria with items. She also denied claims that students on field attachment were not being supervised.
