Kenya Today
KRA Shuts Down Mt. Kenya Breweries Over Fake Tax Returns
On Monday, KRA stated that the directors and chairman of Mount Kenya Breweries were on the run and had failed to abide by orders to surrender themselves to KRA for questioning. They had been summoned as a result of a raid conducted by KRA on April 9th and April 10th. They are accused of allegedly failing to file tax returns and using fake excise duty stamps on their spirit brands.
“Directors and chairman have not surrendered to the authority. They were suspended under section 20 of excise Duty Act No .23 of 2015. Investigations are still ongoing and the intention is to suspend the license, establish the extent of revenue loss and prosecute the company and directors for tax evasion as soon as the investigation is complete” KRA said on Monday.
Last year, the company was among 10 listed firms that KRA was investigating over tax evasion through the importation of empty bottles used for packaging alcoholic spirits and those that do not have corresponding bottle tops and excise duty stamps.
These companies were said to miss filing tax worth billions of shillings to KRA. Annually, tax evasion in the alcoholic business is said to lead to an estimated loss of Ksh 10B in failed tax returns.
KRA and KEBS senior officials were summoned last year by parliament over allegations of conspiring with the rogue alcohol companies to benefit after the companies don’t pay their due taxes.
By Joy Ngoiri
