NAIROBI, Kenya, March 21 – The Kenya Revenue Authority (KRA) has lodged objections barring 1092 companies from closing their businesses before the settlement of their tax liabilities amounting to Sh1.15billion.
The taxman filed an objection at the Attorney-General’s office after the companies submitted their applications for voluntary strike-off while still owing tax debts to the government.
In a statement, KRA noted that during the period July 2022 to March 2023, the companies through the Registrar of Companies issued ninety-day notices through the Kenya Gazette alerting the public of their intended voluntary dissolution.
The notices invited the public to share any reasons why the companies should not be dissolved.
The KRA then raised concerns and demonstrated to the Registrar why the companies should not be dissolved, pending unsettled tax liabilities.
The Companies Act 2015 requires the companies to provide copies of their application for voluntary dissolution to all their creditors including the KRA within seven days of submitting applications to the Registrar of Companies.
“KRA requires directors of companies due for closure, to pay their tax debts before submitting their applications to the Registrar. This will ensure the companies are compliant and that the tax issues are resolved amicably,” the statement read.
The taxman says it has given sufficient reasons to the Registrar of Companies to temporarily stop the dissolution of the companies, pending the unsettled tax dues.
KRA’s move comes at a time the government is working towards sealing revenue leakages as it seeks to hit a Sh3 trillion revenue target in the 2022/23 financial year.
