Kenya Revenue Authority (KRA) officials yesterday reached an agreement with the Nairobi City County Government on a Sh5.8 billion tax demand.
The county committed to make a part payment of the amount that the taxman is demanding from Governor Mike Sonko’s administration.
KRA had summoned county government officials to appear before the tax tribunal over the non-payment of tax.
Among the taxes that the county has been accused of failing to remit are statutory Pay As You Earn (PAYE) Income Tax, Withholding Income Tax and Withholding VAT.
A statement from KRA yesterday stated that the county executive in charge of Finance Charles and Governor Sonko were the top county officials who attended the meeting.
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KRA took the county team through a chronology of events and what led to the accumulation of the debt; detailed compliance efforts and enforcement actions taken. It was noted that some of the tax arrears were accrued during the previous county government’s leadership.
The county also agreed to ensure that they are up to date with remittance of withholding taxes. KRA informed the county government that its failure to remit withheld taxes has subjected suppliers to complications when filing their returns.
“KRA is committed to building taxpayers’ trust through facilitation to foster compliance with tax and customs legislation.
Taxpayers are encouraged to pay their taxes in time and remain compliant with tax laws in order to avoid punitive enforcement actions, including prosecution,” said David Yego, the commissioner for investigations and enforcement.
Seven governors were last week summoned by the taxman over non-payment of taxes.
Among the governors summoned by KRA were Ferdinand Waititu or his deputy (of Kiambu) who owe KRA Sh3,216,613,189.
According to KRA, Kilifi County, under Amason Kingi, owes Sh2,059,410,078, while Okoth Obado’s Migori County has Sh1,300,000,000 tax arrears.