This archive report was first published on 11 November 2019.
On November 6, the Tax Appeals Tribunal (TAT) made a ruling that suspended the deduction of 20% Withholding Tax from gamblers' winnings. The Kenya Revenue Authority (KRA) has since filed a notice of appeal against the ruling.
According to a statement released by KRA on November 11, the authority expressed its surprise at the tribunal's understanding of 'winnings' as amended by the Finance Act 2018.
“KRA disagrees with TAT’s decision for among other reasons, the fact that it departed from the decision by Justice Hatari Waweru’s in a Meru High Court Case in which the Learned Judge had found that there was no ambiguity in the interpretation of the term “winnings” as defined by the Income Tax Act,” read part of KRA’s statement.
Some betting firms have started implementing the Tax Appeals Tribunal ruling, with customers receiving notifications informing them of the change.
“Dear Paul, the Tribunal ruled in our TAT Appeal no. 149 of 2019 that winnings refers to payout excluding the amount staked. Going forward, withholding tax is now on this basis i.e. PAYOUT less STAKE. Thank you for standing with us,” read one of the messages from customers seen by GameYetu.
