The Kenya Revenue Authority has detained a large consignment of Jameson Irish Whisky in a tax dispute with Pernod Ricard Kenya Limited over the customs value used to calculate duty.
The importer, which distributes and markets Jameson, has gone to court seeking release of the goods while it contests the tax demand before the Tax Tribunal.
KRA is seeking Sh700 million in arrears from the company. In January 2018, the agency issued a Sh697 million demand notice covering imports between July 2012 and December 2016, saying an audit had found under-declaration of the value of the goods.
Pernod Ricard Kenya has rejected that position and wants to keep trading while its appeal is heard. It moved to the High Court after the consignment was detained, arguing that the continued hold-up is leaving it short of stock and exposing it to warehouse charges.
The company says KRA agreed on July 3 to release four consignments pending the court case, but the arrangement did not materialise. It later returned to court, saying the goods were still being held even after it provided a bank guarantee.
KRA has opposed the application. The authority says the importer’s position as the only dealer made direct comparison with other market transactions difficult, and it relied on values from independent dealers to conclude that the customs value had been suppressed.
The tax authority also argues that Pernod Ricard Kenya’s undertaking to secure customs revenue was not a lawful mechanism. It says the company can pay tax on the uplifted value and seek a refund later if it succeeds in the case.
KRA further maintains that failing to collect the tax would hurt the public by reducing funds available for government service delivery.
