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Kenya Revenue Authority demands KSh 8.5 b withholding tax arrears from SportPesa, Betin

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– Kenya Revenue Authority declared Safaricom collecting agent for the two betting companies

– Safaricom is expected to immediately remit the said amount to Central Bank of Kenya account

– SportPesa reportedly owes the taxman KSh 3.29 billion whereas Betin owes him KSh 3.29 billion in withholding tax arrears

Kenya Revenue Authority (KRA) has demanded KSh 8.59 billion withholding tax arrears from top betting firms SportPesa and Betin Kenya as the taxman moves to tighten the noose on the necks of tax evaders.

The authority also declared Safaricom as the collecting agent for Pevans East Africa and Gamcode Limited which trade under brand names SportPesa and Betin respectively.

READ ALSO: KRA receives nod to collect over KSh 2.7 billion tax arrears from betting firm Sportpesa

Kenya Revenue Authority demanded KSh 8.5 billion from Sportpesa and Betin this being withholding tax arrears to be paid by Safaricom, the collecting agent for the two betting firms. Photo: KRA.
Source: UGC

READ ALSO: Gavana wa CBK Patrick Njoroge awahamasisha wakaazi wa Kondele hukusu noti za kizazi kipya

The taxman reportedly penned a demand letter to Safaricom in June 2019 asking the telecom giant to immediately remit KSh 8.59 billion withholding tax arrears from SportPesa and Betin being their collecting agent.

“I hereby declare you to be an agent of the above taxpayer (SportPpesa) and require you to pay the sum of KSh 3,296,532,012 being tax due by the said taxpayer,” stated KRA manager for debt enforcement, Asha Salim, as quoted by Business Daily.

READ ALSO: Relief as court suspends Uhuru’s 1.5% housing levy deductions

SportPesa reportedly owes the taxman KSh 3.29 billion whereas Betin Kenya is expected to remit KSh 3.29 billion, money that KRA tasked Safaricom to wire to Central Bank of Kenya (CBK) account.

Safaricom, just like like Airtel, provide the platform where customers of the betting companies can do all their transactions, deposits and withdrawals, via the e-wallet.

READ ALSO: Government to suspend licences of all betting firms in the country from July 1

The latest move by KRA comes barely a month after the taxman was given the green light by court to collect more than KSh 2.7 billion withholding tax arrears from SportPesa.

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A ruling made by Milimani Commercial Courts chief magistrate Peter Gesora granted the taxman permission to collect the taxes on winnings, in this case taxes deducted from incomes or payments due to winners in sports betting.

In the landmark ruling delivered on May 23, 2019, Gesora stated the nature of sports betting was that winnings are unpredictable and a player cannot be certain on the amount they will win.

“That being the situation, it is not sound to argue that certain amount should not be collected by withholding tax agents.

Revenue collection is well regulated by statute, and by the fact that Sportpesa is a tax agent is a clear indicator that all those using its platform are obligated to pay tax on their winnings,” Gesora ruled.

READ ALSO: Kenya Revenue Authority decry missing KSh 2.7 billion revenue from betting wins due to court order

The chief magistrate further noted the KRA commissioner of domestic taxes is mandated to collect taxes from sports betting firms and remit the same to the Sports, Arts and Social Development Fund as stipulated in Section 35 (1) i and 3 (h) of the Income Tax Act.

He was ruling on a 2014 case filed by one Benson Irungu against Sportpesa.

Irungu’s suit was seeking to stop the betting firm from deducting and remitting taxes arising from individual’s winnings in sports betting.

Do you have a life-changing story you would like us to publish? Please reach us through news@tuko.co.ke or WhatsApp: 0732482690 and Telegram: Tuko news.

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Kind man offers to help single fathers with Christmas goodies for kids ▷ Kenya News

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– A man has offered to help single dads around Durban, South Africa this Christmas

– Sihle Mazibuko posted on his twitter handle asking fathers who were unable to buy their children gifts to DM him

– Sihle said his aim was to put a smile on these children’s face

A man has become an online sensation after he reached out to single fathers who couldn’t afford to buy Christmas gifts for their children and offered to pay for them himself.

Sihle Mazibuko had earlier posted on his tweeter handle calling out single dads who were low on cash but wanted to spoil their kids so as to put a smile on their faces.

READ ALSO: Mike Sonko summoned in Voi court on Wednesday for assaulting senior police officer

READ ALSO: Senator Moses Kajwang wants Murkomen, Kilonzo Jnr barred from representing Sonko in graft case

His tweet went viral with the majority of the users praising him for his kind act.

Twitter user Tsholo94 said:

“This is so sweet!”

JablileAzande said:

“Act of kindness, may God bless you”

DragonLady_SA said:

“You are so kind. God bless you”

KakazaNomfundo said:

“You will be blessed hundred fold for your good deeds!”

Laboentsa said:

“Good South Africa needs people like you”

READ ALSO: Baringo: 2 dead, 15 hospitalised after eating githeri

In Kenya, Nyali MP Mohammed Ali alias Moha Jicho Pevu kicked off the Christmas mood with gifts for police officers in his constituency.

The outspoken politician took to his social media where he shared photos gifting the officers with the animals as well as KSh 100,000 in appreciation for their dedication to service delivery.

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Do you have a groundbreaking story you would like us to publish? Please reach us through news@tuko.co.ke or WhatsApp: 0732482690. Contact Tuko.co.ke instantly.

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AfDB Commits €345 Million to Kenya and Tanzania

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Kenya and Tanzania will benefit from African Development Bank (AfDB) €345 million financing package for road construction support representing 78.5% of the total €399.7 million project cost.

Furthermore, AfDB says that the projects will touch over three million citizens in Tanzania and Kenya.

In Kenya, the bank supports Mombasa-Lunga Lunga/Horohoro road with the European Union (EU) contributing a grant of €30 million, 7.7% of the total project cost to GoK.

On the other hand, the funds will fund phase I of the Tanga-Pangani-Bagamoyo road in Tanzania.

This first phase involves the construction of 175 km of road sections:  the 121 km Mkanga-Pangani road section in Tanzania and the 54 km Mombasa-Kilifi road section in Kenya.

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Furthermore, the project will also link the ports of Dar es Salaam, Tanga and Mombasa, and stimulate the blue economy in coastal areas.

East African transport corridors network, connecting Kenya and Tanzania will benefit producers, manufacturers and traders, farmers and fishermen with improved access to local and regional markets.

Moreover, there are spillover benefits for landlocked countries Democratic Republic of the Congo, Burundi, Rwanda, Uganda and South Sudan that depend on Mombasa as gateway to global markets.

The road crosses regions with high rates of youth unemployment. In light of this, the project includes a vocational training component for 500 unemployed youth (half of them women) to acquire marketable skill and improve their economic prospects.

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37 African Countries to Benefit from ADF’s $7.6 Billion Fund

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Garissa 50 MW Solar Plant Connected to National Grid –

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The President presided over the commissioning of the Garissa 50 MW Solar farm constructed at a cost of KSh13 billion.

According to Xinhua, China Jiangxi Corporation for International Economic and Technical Co-operation (CJIC) designed and built the plant in conjunction with the Kenya Rural Electrification Authority (REA).

Read Also: Kenya ranked third in renewable energy capital investments

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The solar farm is the largest in East and Central Africa placing Kenya as a leader in renewable energy.

Speaking at the commissioning ceremony, President Kenyatta said that the solar farm indicates broader strategy to harness 400MW from the vast solar resource.

Moreover, President Uhuru opines that Garissa town and its environs will have a stable power connection.

Related:

Africa’s First Hybrid Renewable Energy System established in Meru

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