This archive report was first published on 12 November 2019.
On November 8, 2019, the Kenya Revenue Authority (KRA) filed a notice of appeal challenging a ruling by the Tax Appeals Tribunal (TAT) that suspended the deduction of 20 per cent withholding tax from gamers' winnings.
According to KRA, the tribunal's decision departed from a 2019 Meru High Court case in which Justice Hatari Waweru found that there was no ambiguity in the interpretation of the term 'winnings' as defined by the Income Tax Act.
“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,” said KRA’s Legal boss Paul Matuku.
As a result of the TAT ruling, betting firms such as Sportspesa and Betin had begun deducting 20 per cent withholding tax from their customers' winnings in compliance with directives from the Betting Licensing and Control Board and the Kenya Revenue Authority.
However, this move was despite an April 2019 court order that barred the firms from deducting and remitting the money to KRA, until this particular case was heard and determined.
