The Kenya Revenue Authority can no longer collect taxes accrued from betting firms following a court order which stopped the operations of crucial Income Tax Act sections (Sections two, 10, 34 and 35).
Usually, the agency collects approximately Sh2.7 billion per month from betting firms which Treasury said is used to facilitate activities in the sports, cultural development and the rollout of the Universal Health programmes.
Senior Resident Magistrate DM Kivuti made the ruling In favor of Benson Irungu who sued Sportpesa Ltd trading as Pevans East Africa in 2014.
KRA had joined the case after the courts had initially issued an order stopping Sportpesa from deducting withholding tax on winnings from betting on April 11
However, the orders were overturned, and KRA was allowed to continue collecting due taxes from Sportspesa.
KRA’s counsel led by Acting Commissioner Legal Services, Mr Paul Matuku has moved to court seeking that the nullification of orders granted by Senior Resident Magistrate D. M. Kivuti pending the hearing of the inter-parties case.
The law permits betting and gaming firms to withhold a fifth of the sums won by gamers, restoring the tax charged on betting winnings that were dropped in 2016.
