KRA Reaches Agreement With Mayfair Shareholders To Settle KSh 279 Million In Tax Arrears

• Former presidential aspirant Peter Kenneth disclosed Mayfair shareholders had inked a deal with KRA to settle KSh 279 million tax
• The accused reportedly filed capital gains tax (CGT) in December 2022, yet they finalised transactions in 2023
• The former Gatanga lawmaker said the bank shareholders had paid the first instalment and would settle the rest in six phases

The Kenya Revenue Authority (KRA) has inked a deal with Mayfair Bank shareholders to settle a KSh 279 million outstanding tax.

In a crackdown on tax evaders, the government agency seeks to recover the amount from former presidential aspirant Peter Kenneth and other shareholders of three companies accused of underpaying tax.

As reported by Business Daily, the taxman revealed that the accused paid KSh 569.9 million for the sale of their shares instead of KSh 1.7 billion.

They include over 30 shareholders of Mayfair Bank, who filed capital gains tax (CGT) in December 2022, yet they finalised transactions in 2023.

"Analysis of CGT data revealed that some taxpayers fraudulently filed CGT returns for transfer of shares in December 2022, before the actual transactions had taken place, with an aim of paying CGT at five per cent, therefore, evading payment of CGT at 15 per cent (effective 1st January 2023)," KRA stated.

What Kenneth said on KRA's tax arrears

The former Gatanga lawmaker said the bank shareholders had agreed to settle the tax with KRA.

While commenting on the matter, Kenneth told TUKO.co.ke that they already paid the first instalment and would pay the rest in six instalments.

"As far as Mayfair is concerned, the dispute has already been resolved. We had agreed with them (KRA) on a payment plan and we will clear the arrears in six installments,” Peter Kenneth told TUKO.co.ke on Friday, August 18.

How housing tax would be deducted

In other news, KRA clarified how the housing tax is deducted from employees' salaries.

In a statement issued on Tuesday, August 15, the taxman noted the levy is deducted from the basic salary and other allowances.

On Thursday, August 3, TUKO.co.ke reported the government backdated the housing tax to July 1 after the Court of Appeal lifted the suspension of the Finance Act 2023. KRA was appointed as the collection agent.

In an internal circular, KRA ordered its officers to follow specific dates provided for in the Finance Act 2023 while implementing tax changes.

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KRA demanded KSh 1.1b in tax arrears from Peter Kenneth and others.

KRA Reaches Agreement with Mayfair Shareholders to Settle KSh 279 Million in Tax Arrears - Tuko

KRA Reaches Agreement with Mayfair Shareholders to Settle KSh 279 Million in Tax Arrears - Tuko