BetWay Ordered to Pay Ksh 158 Million to KRA in Taxes
Kevin Namunwa  |  Sep 23, 2020
       

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p>The Tax Appeals Tribunal has ordered betting company Betway Kenya to pay tax arrears amounting to Ksh 158 Million to the Kenya Revenue Authority (KRA).

The Betting Company had appealed to the tribunal objecting to paying of various tax obligations totalling Ksh 158 Million. The tribunal, however, ruled in favour of the taxman.

Betway Kenya wanted to stop KRA from demanding additional Withholding Tax on winnings derived from bets placed by punters and Pay-As-You-Earn (PAYE) on the earnings of one of its employee John Felix Kittony, who the company alleged to have retained as an Independent Consultant.

The Tribunal ordered the company to pay all the taxes it had agreed to pay in regard to withholding tax on professional fees.

The taxes amounted to Ksh 9.95 million, capital costs relating to research and processing costs of Ksh 16.5 million and outstanding Withholding Tax based on gross winnings of Sh131.7 millioninclusive of penalty and interest as at the time of assessment.

On Withholding Tax on professional fees, it observed that from 1st March 2016 to 12th October 2016 a period of seven months, John Felix Kittony was an independent Contractor but became an employee immediately he was appointed Director, and the company was liable to withhold and remit PAYE from that time.