This archive report was first published on 20 May 2020.
On May 20, 2020, Parliament took a significant step in addressing tax evasion claims by directing the Kenya Revenue Authority (KRA) to table records on the taxes paid by 12 local firms that manufacture and import alcohol.
The firms at the centre of the tax evasion claims are Zheng Hong Limited, Patiala Distillers, Elle Kenya, Mount Kenya Breweries, Crywan Enterprise, Vinepack Limited, FRM EA Packers, Platinum Distillers, Moon walk Investment Limited, Tihan Limited, and Two Cousins Distillers.
According to the lawmakers, the 12 firms allegedly did not pay duty for over 200 million empty bottles of 250 millilitres that were imported and cleared by the taxman, then re-filled with various alcoholic brands.
MP TJ Kajwang', the Ruaraka MP, tabled a motion seeking the directive, citing the need for an inquiry into the matter.
“I hereby seek your directive to cause the departmental committee on Finance and National Planning to undertake an inquiry in the matter and table to the house on the following,” Mr Kajwang' said.
The taxman will be required to provide details on the total tax paid by the firms between January 2019 and March 2020, as well as whether the firms are tax compliant and if not, why.
Additionally, the taxman will be required to provide details on the number of bottles imported by the firms, the number of bottle tops supplied to or imported by the firms, and the amount of taxes paid.
