Blow to Keroche as court allows KRA to collect Sh9 billion

id : 84 Litigation   
posted by : Admin
 DOQ : 2020-03-12 01:30:36

The Kenya Revenue Authority (KRA) is set to collect over Sh9 billion from Keroche Breweries after winning six appeal cases filed by the firm.

In the three appeals before Tax Appeals Tribunal, the contention was in the manufacturing process of Vienna Ice Brand of Vodka. The brewer argued that, Vienna Ice brand of Vodka was produced by diluting Crescent Vodka, a process that did not amount to manufacturing KRA relied on the compounding of denatured spirits act cap 123 and argued that the process undertaken by Keroche Breweries was compounding within the meaning of the act.

“Compounding of spirits also amounted to manufacture of new product within the definition of customs and excise act, cap 472 now repealed.”

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