The Kenya Revenue Authority (KRA) yesterday met with the Nairobi City County (NCC) have met over the accrued withholding taxes by the NCC amounting to Kshs5.8Billion.
KRA had issued summons requiring the county leadership to appear before it on Thursday 4th September, 2019.
KRA management met the NCC leadership comprising of County Governor Mike Mbuvi Sonko, County Executive in Charge of Finance Mr. Charles Kerich, Chief Officer for Finance Mr. Halkano Waqo and the Acting County Secretary Mr. Leboo Morintat.
KRA took the county team through a chronology of events and what led to the accumulation of the county debt; detailed compliance efforts and enforcement actions taken.
It was noted that some of the tax arrears were accrued during the previous county government leadership. The tax arrears comprise PAYE, Withholding Income Tax and Withholding VAT.
The County team sought to be allowed to immediately make part payment of the amount due as a show of good faith in their attempt to regularize all their tax matters.
The County also agreed to ensure that they are up to date on remittance of withholding taxes.
KRA informed the county government that its failure to remit withheld taxes has subjected suppliers to complications while filing their returns.
KRA said it will not abate prosecution of taxpayers for an offence under a tax law despite payment of taxes as required under Section 108 of the Tax Procedure Act 2015.
The tax collector said it is committed to building taxpayers trust through facilitation to foster Compliance with Tax and Customs Legislation.
It also encouraged taxpayers to pay their taxes in time and remain compliant with tax laws in order to avoid punitive enforcement actions including prosecution.
The tax collector last week summoned seven governors over non-payment of taxes.
Among those summoned by KRA were Ferdinand Waititu or his deputy (of Kiambu) who owe KRA Sh3,216,613,189.
KRA said Kilifi County, under Amason Kingi, owes them Sh2,059,410,078, while Okoth Obado’s Migori County Sh1,300,000,000.