Why KRA arrived at Sh118m figure for Gor Mahia

KRA authorities accuse K'Ogalo officials of refusing to avail records to facilitate compliance check despite being served with notice last August

Kenya Revenue Authority (KRA) has accused Gor Mahia officials of ignoring appeals to put their tax matters in order forcing their decision to issue a huge tax demand.

According to Ezekiel Maru, acting Deputy Commissioner, Marketing and Communication, K’Ogalo is among those that have been identified as a non-compliant tax payer.

“We wrote to the club on our intentions to carry out a compliance check which was served on them last August. We required that Gor Mahia avails records to facilitate a compliance check. No records were availed and neither did officials respond to our request to for a meeting to discuss the matter,” Maru told Goal on Wednesday.

He explained that KRA was then forced to issue estimates on what they think they are owed by the club. “Gor Mahia wrote to object to the assessments but the letter was not accompanied by records or returns as required by law. No payments have been made to date either,” said the official.

He said it is not only Gor Mahia, who are being monitored but that a number of clubs have also been contacted and some have even paid up.

Goal reported on Tuesday that the Kenyan champions Gor Mahia have been slapped with a Sh118million income tax demand note hardly a month after the team lost their shirt sponsorship.

KRA wrote to Gor Mahia last week demanding the money and copied the letter to Kenyan Premier League “We received the letter as agents of Gor Mahia and we do not understand what method was used to arrive at such a figure. We will meet with club officials and discuss way forward," Oguda revealed.

The move to tax K’Ogalo comes hardly four months after the tax men issued demand notes to various top athletes to pay taxes. The move was widely criticized by athletes and some even threatened to boycott representing the country in major events.