This archive report was first published on 25 October 2019.
Published on October 25, 2019, the Kenya Revenue Authority (KRA) is waiting to know the fate of a $50.2 million tax demand it made against Tullow Oil.
The taxman had demanded the amount from Tullow Oil for the transfer of 25 per cent of its interests in 2015 and a further 10 per cent in 2018 in Block 12 A in South Lokichar Basin to the UK-based Delonex Energy.
Appearing before the National Assembly Committee on Energy, KRA deputy commissioner in charge of policy Caxton Masudi said the British oil firm has since appealed the demands.
“Since the matter is in dispute, we cannot enforce collection until the matter is resolved by an appellate body which in this case is tax appeals tribunal,” said Mr Masudi.
Tullow Oil in its appeal says that “transfer of interest being taxable supply is immaterial since these companies are not registered and are exempt by law from registration’.
