Kenya Revenue Authority, KRA is demanding Sh14 billion in tax arrears from leading sports betting and gaming company SportPesa. The taxman claims Pevans East Africa Limited failed to comply with the Income Tax Act that provides for taxation from betting.
In the demand note, KRA says the firm should have withheld and remitted Sh12 billion out of the Sh60 billion it payed out to winners during the period in question. The additional Sh2 billion demanded by the tax man has accrued due to penalty and interest accrued.
However, SportPesa has accused the taxman for acting in contempt of a court order issued in 2014 that barred KRA from demanding tax remittance from individual winners.