KRA appoints Mumias to collect Sh19m from outgrowers

In a tactful strategy that could smoke out outgrower companies in the sugar industry with massive tax defaults, the Kenya Revenue Authority (KRA) has opted to hire a miller to collect accrued arrears from an affiliate outgrower institution.

KRA has appointed Mumias Sugar Company to recover some Sh19 million owed to it in tax arrears by its affiliate Mumias Outgrower Company.

“In exercise of the powers conferred upon me by Section 96 of the Income Tax Act, I hereby declare you to be agent of the above person (Mumias Outgrower Company) and require you to pay me the sum of Sh18.5 million being tax due by the said person,” KRA senior deputy commissioner Alice Owuor said in a notification letter to Mumias Sugar Company managing director Evans Kidero.

And as a deliberate move to boost its chances of recovering the money, KRA urged the miller to immediately make remissions even from money it currently held on behalf of the outgrowers.

“Pay me from any money which may, at any time within twelve months from the date of this notice be held by you for, or by you to the said person,” the tax man said.

This story is available in full in the Business Daily e-paper.
source:bdafrica