This archive report was first published on 11 November 2019.
The Kenya Revenue Authority (KRA) has filed a notice of appeal against a ruling by the Tax Appeals Tribunal (TAT) that suspended the deduction of 20% withholding tax from gamers' winnings.
The ruling, delivered on 6th November 2019, was in favour of seven betting firms that had challenged KRA's interpretation of the term 'winnings' as defined by the Finance Act 2018.
According to KRA, the TAT's decision departed from a previous court ruling by Justice Hatari Waweru in a Meru High Court case, which had found that there was no ambiguity in the interpretation of the term 'winnings'.
However, the TAT found that Justice Waweru's decision was inapplicable and not binding on it because it had not delved into the definition of the term 'winnings', said KRA in a statement.
Consequently, KRA has commenced the appeal process, even as the enforcement of the withholding tax remains suspended.
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