KRA Goes After Blood Money In Westgate - DAILY UPDATES

KRA Goes After Blood Money In Westgate


KRA Goes After Blood Money In Westgate

The taxman has once again reared his ugly head and is this time round going after the Sh2.7 billion the Westagate Mall was given following the terrorist attack that left many people dead and injured and destruction and loss of property.
Out of the Sh600 Million payout remitted to the owners of Westagate Mall, Sony Holdings, by Kenindia Insurance in 2014, the Kenya Revenue Authority wants Sh221 Million in taxes.
Sony Holdings is protesting Kenya Revenue Authority's decision to classify the compensation as revenue instead of classifying it as capital. Sony Holdings say the taxman did this to justify the heavy taxation.
 Compensation that is paid out as a result of loss of earnings is normally subject to income tax. Compensation as a result of loss of capital such as land, buildings, a plant or machinery is exempted from tax.
The mall had a property damage and loss of rental income insurance cover with Kenindia Insurance. The insurance company has been releasing the compensation sum in bits since 2014.
The owners of the mall have accused the taxman of misleading the treasury cs Henry Rotich and have even wrote to him seeking to be exempted from tax which has risen to Sh380 million since 2014.
There was backlash after the mall was compensated for the losses incurred as some people felt that the victims of the terrorist attack should have been compensated first. There are some victims of the attack that have not fully recovered from the incident with cases of PTSD being widely reported.

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