This archive report was first published on 28 September 2019.
Sportpesa, Betin Halt Operations in Kenya Over Tax Dispute ¶
September 28, 2019 - Sportpesa and Betin have suspended their operations in Kenya due to a tax dispute with the government.
The two betting companies have been at odds with the government over a 20% tax rate imposed on their operations. According to reports, the companies have been struggling to meet the tax demands, which has led to a stalemate in their operations.
Sportpesa, in a statement, expressed its disappointment with the government's decision to impose the 20% tax rate. The company stated that the move would have a significant impact on its business and customers.
"The decision was made after the Minister of Finance was disappointed with the way betting companies were using their revenue," Sportpesa said in a statement.
As a result of the tax dispute, Sportpesa has informed its customers that they will be charged a 20% tax on their winnings. The company has also warned its customers that they may face difficulties in accessing their accounts if the government fails to accept the 20% tax rate.
Betin, on the other hand, has already informed its employees that they will be laid off if the company fails to reach an agreement with the government. The company has given its employees until October 31, 2019, to find new employment.
"We have been forced to lay off our employees due to the expected losses we will incur as a result of the tax dispute," Betin said in a statement.
The tax dispute between Sportpesa, Betin, and the government has been ongoing for several months. The two betting companies have been struggling to meet the tax demands, which has led to a stalemate in their operations.
It remains to be seen how the tax dispute will be resolved, but one thing is certain - the two betting companies will have to find a way to meet the government's tax demands if they want to continue operating in Kenya.
