The Kenya Revenue Authority (KRA) is under fire over its triggering of the freezing of bank accounts belonging to major betting firms despite a court order which was intended to prevent the freeze.
Last week the betting firms which include SportPesa and Betin, told Parliament that by the Kenya Revenue Authority (KRA) pushing for the withdrawal of the betting firms’ licenses and freezing of their bank accounts, it went against the court order and the law.
Betin Kenya told the Senate Committee on Justice, Legal and Human Rights that, “Despite a High Court order against the KRA, various agency notices have been issued by the KRA against the company freezing their bank accounts.”
Betin Kenya added that, “The KRA has proceeded to notify the BCLB that the company is non-compliant and should not have its licences renewed.”
The betting firms argued that withholding a licence is not a legally recognised measure of resolving a tax issue with SportPesa telling the Senate that, “It is illegal for the KRA to stop our business operations pending determination of the amount of tax payable… It is a measure not recognised in the Tax Procedures Act, the guiding statute for tax administration.”
The dispute between the betting firms and the Kenya Revenue Authority (KRA) is regarding responsibility of the gambling firms in collecting 20 percent of winnings on behalf of the taxman and the amount.
The High Court had issued an order stopping the Betting Control and Licensing Board (BCLB) which is the betting regulator within Kenya and other agents from stopping the betting firms from operating after the 30th of June 2019.
On the 10th of July 2019 the betting regulator ordered telecoms firms to stop processing payments for sports betting companies, effectively grounding their operations.
The Betting Control and Licensing Board (BCLB) also stated that 27 betting firms had not yet met certain undisclosed licensing requirements.
Last week, Senators censured the State for defying court orders with the Chair of the committee Samson Cheragei stating that, “We want them to tell us why they have decided to treat court orders as tissue paper.”
The Kenya Revenue Authority (KRA) in a statement however, made it known that it is currently in talks with the betting firms.
In response to Business Daily Africa, Kenya Revenue Authority (KRA) said, “This is a matter before court and we cannot comment on the merits of the same.”
It (the Kenya Revenue Authority (KRA)) added that, “However, the betting companies and KRA are in discussions with a view to resolving the dispute. Once a resolution has been reached, the same will be recorded in court.”
What do you think about the entire situation regarding the Kenya Revenue Authority (KRA), Betin Kenya, SportPesa and other betting firms in Kenya. Was the Kenya Revenue Authority (KRA) right? Did the step out of line? Do you have any suggestions which could help all parties involved, settle amicably? Have you been affected by the situation? If yes, how?
Feel free to let us know in the comments section.
