Kenya Revenue Authority demands Sh118m from Gor Mahia

The letter from KRA is copied to Kenyan Premier League (KPL), the custodian of broadcast sponsorship money from SuperSport.

Gor Mahia Secretary General Chris Omondi confirmed they have received the demand note and have even held a meeting with the taxman. A second meeting is expected to be held next week.

“Our position is that Gor Mahia is a society and therefore are not supposed to pay taxes. On the question of income tax, it is a very tricky area and we are asking why only Gor Mahia has been asked to pay such an amount of money.

“We have also demanded an explanation as to how the figure was arrived at because it looks like there was a lot of estimations. We are having a second meeting and hopefully it can be explained to us,” said Omondi.

Omondi further revealed that the letter from KRA, which was also sent to their former sponsors Tuzo, forced them to withhold the players’ salaries.

KPL Chief Executive Jack Oguda said he was aware of the new development and had convened a meeting with Gor Mahia officials on Wednesday to discuss the way forward.

“We do not know how the figure has been arrived at and have scheduled a meeting with Gor Mahia officials to discuss the matter,” said Oguda.

  Former athletes

Oguda said last year, AFC Leopards were also asked to pay Sh4 million in tax areas by the KRA.

At the beginning of the year, KRA issued demand notes to various top athletes to pay taxes.

The move was widely criticised by the athletes and some even threatened to boycott representing the country in major events.

The taxman, however, received backing from two former athletes who asked their colleagues to co-operate.

The 1991 World 10,000m champion Moses Tanui and the man who won in the 5,000m at the same championship, Yobes Ondieki, said paying taxes is a responsibility of all citizens and all should comply.

The two told the runners to demand improvement of the dilapidated sporting facilities to justify the payment of the taxes.

“We all understand the important role that sport is playing to market the country. It is a noble duty and should be appreciated by all. But when it comes to paying taxes, it is the responsibility of all of us,” said Tanui, who has won the Boston Marathon twice.

Tanui and Ondieki, who was a 10,000m world record holder, advised athletes currently earning prize money and bonuses from races abroad, to file returns to the taxman to prove their case and avoid being taxed twice.

“Our advice is athletes should ask their managers and agents to provide files and returns of taxation on the earnings from the source and the expenses incurred like paying for visas, air tickets, accommodation and others so that payment can be determined,” added Tanui, who has shifted from athletics to golf.