KRA freezes Gor Mahia accounts again
For the second time, the Kenya Revenue has slapped a hefty tax bill on Gor Mahia. And this time KRA has gone ahead and frozen the Gor Mahia bank account. This according to a report on Citizen sports. At issue is a tax bill of Ksh 129 million which KRA claims that Gor Mahia owes. It is difficult to imagine that Gor Mahia owe that kind of money given that the club barely meets its obligations towards paying players. Also it is highly unlikely that other clubs and sports organizations are compliant with KRA. So why are they constantly singling out Gor Mahia?
Additional Reporting from Citizen Sports
Gor Mahia are starring at yet another round of financial quagmire after the tax-man Kenya Revenue Authority froze the club bank’s account at the Development Bank over a Ksh. 129 million tax arrears.
Citizen Digital understands that the tax-man took the drastic measure this week.
Gor Mahia’s deputy secretary general Ronald Ngala declined to talk on the matter: “I can’t comment on that issue at the moment, please look for the chairman.”
When reached for comment, club boss Ambrose Rachier said that he had received a phone call from the bank’s Managing Director that there was a letter from KRA’s Income Tax Department though “he wasn’t sure” of its contents.
Said Rachier: “Well, I have not seen the letter but I’ve been called by the bank…I would plead with you that I see the letter. Wait until tomorrow then we can talk.”
Rachier, when asked whether there had been correspondence between the club and the tax-man before the startling decision was made, said: “We really had nothing (no correspondence) at all . All I know is that about a month ago someone posted on our social media, a purported letter from the Income Tax Department.
Gor Mahia are starring at yet another round of financial quagmire after the tax-man Kenya Revenue Authority froze the club bank’s account at the Development Bank over a Ksh. 129 million tax arrears.
Citizen Digital understands that the tax-man took the drastic measure this week.
Gor Mahia’s deputy secretary general Ronald Ngala declined to talk on the matter: “I can’t comment on that issue at the moment, please look for the chairman.”
When reached for comment, club boss Ambrose Rachier said that he had received a phone call from the bank’s Managing Director that there was a letter from KRA’s Income Tax Department though “he wasn’t sure” of its contents.
Said Rachier: “Well, I have not seen the letter but I’ve been called by the bank…I would plead with you that I see the letter. Wait until tomorrow then we can talk.”
Rachier, when asked whether there had been correspondence between the club and the tax-man before the startling decision was made, said: “We really had nothing (no correspondence) at all . All I know is that about a month ago someone posted on our social media, a purported letter from the Income Tax Department.
Ochien mochako oir .Jowa. Jasego en Ango? Wakili AR cannot sort Got Taxes out? By the way do the athletes also comply? When the machine is well oiled and running smoothly jachien sneaks in.
Jamriambo mae tek moloyo mwanda ma kit mikayi wuod maa..Koro itkmo nade une jokma osomo finance and accounting?An ja Sciences magi akya
Ngala ,when it comes to weighty administrative matters you refer to chairman, but when it comes to colluding with Holland nyangi to steal gate money you don’t refer to chairman taxes are very complicated issues clubs should declare earnings then go ahead and declare profit or loss…Bolo you should just resign
What is the role of our bloated office? Does our treasurer understand issues to do with taxation? Or he was elected based on what basis? Popularity? What’s the role of the CEO? To squabble with players bout their allowances?
KRA does not just pick on any organization unless there is nothing amiss. Gor must submit returns, if they should. just like any other org. Failure to submit incurs some penalties and now it’s upto our team to show that the Shs 129m is an anomaly. Does it mean that AR did not learn a lesson last time this happened? Or is it the normal Kenyan ‘impunity’ that is now being practiced by our club? Most clubs now comply to KRA requirements for their own good and part of their best practice.
So disappointing. N wonder we need a 3-member EC and LEAN efficient secretariat. Can Sportpesa help sort out our accounts? After all without them we can barely survive
Hehehe…the Kshs 27 million CAF windfall has attracted the wrong attention – KRA !
Let me find out from AR the other side of the unfolding story.
I was surprised to hear that Kagere has no Bank account. This is wrong and EC should ensure all players have bank accounts and PAYE is paid accordingly if applicable. The club should also do necessary returns to KRA. This is what we call poor management by office holders.
This is good development for the club. EC has gotten used to putting money in their pockets without bothering about the consequences. Rachier is part and parcel of this mess. As i said before this club has only two forces of power. It seems none of them is interested in accountability. I ask again where does Gor money go or disappear to. Why would KRA ask for tax arrears? KRA figures could be disputable. Income comes thru’ sponsorship, gate collections and recently from caf.
If this club is going to go anywhere then it’s management needs to style up.
This club needs to be audited before things go haywire. As Gor succeeds it will attract attention. Some negative, positive, progressive, nonsensical et all.
For example, the receipts for the Kasarani match against Yanga, did the police get % of the real figure or % after the stealing was done? KRA can ask such questions so when they send Rachier and his so called EC for returns, they better have good answers. KRA can easily get the attendance figures and come up with a taxable amount. They could question the agent at the gate and i’m sure no agent wants to mess his reputation. The message is this, if Gor Mahia is falsifying the gate collections then Gor Mahia is involved in tax fraud of the highest order.
I must say that Rachier has done well for the club, but success has a way of getting into the head… then one day just like Mike Tyson you shall find urself on the floor.
It’s unfortunate that these shenanigans are happening when the club least need them but I am in support of this KRA development.
so Mr Rachier these are your options;
1. go to KRA and give them your mathematics, account for all club income and state how it is spent before someone goes to court and forces you to. Remember that Gor is a public institution .
2. Run to the patron for help and have things swept under the carpet.
3. Scream that the govt is against Gor(and a certain tribe) in general and that for some certain reasons, they do not want to see the club lift the CAF cup.
@Dinga, you are spot on. Tax issues must be handled the right way i.e. by resolving with the tax authorities. Hakuna cha kukimbilia Patron hapa or crying foul eti tunamalizwa. Nobody contacted the fans when the EC were eating.
Maybe it’s one of the officials who set the team up since the fights on gate collections are always there within the EC.
No sooner has the dust settled on a purpoted exercise dubbed “scientific analysis of stealing” that was to be undertaken to figure out our problems then in comes KRA with a sledge hammer. In this i shall not waste my time on EC but rather seek an appointment with Patron Raila and beseech him humbly ofcos to call powers that be and get us reprieve. I already know on authority why we are targeted and it is because of 27M group stage Caf windfall and the impending 35M quarter finals prize for we seem likely to sail through. World over the Taxman is called a patient undertaker since when you cant pay your debts they leave you alone to work and make money but Woe unto you should you become rich for all of a sudden they remember their debt. Best way out is an Executive Order of tax write off which only the President can make and in the spirit of Handshake and Gor Mahia carrying the National Flag high in the continent should be considered. Coffee farmers debts were written off many times and many others including ingwe that were pardoned by the same KRA for a 39 M tax arrears. Do not cripple us at this crucial hour Mr Taxman…
Bad leaders are elected by the Good people who dont vote and this office is a consequence of that , this office is a consequence of hirelings who vote not for the good of the club but for the momentary tamtam handed to them by agendaless participants .
Before we chose e.g Bolo as a treasurer , did we even the interogate her Financial management skills ? , and the SG and his boss the deputy , what proven organization have they run to make as vote them in to run such sensitive dockets? , the same applies to the rest of the tens of officials , we are cheating ourselves from the very onset if we expected otherwise from this plethora of unqualified and unstainable shenigans and we deserve all that is coming our way once we have shun our responsibilities as the voting fraternity and I
hope that as we go on a tangent on what we are going through , we are learning our lessons .
Rachier is very close to one of the most esteemed banker and financial expert in this country , one Mr Victor Kidiwa , who is also a good friend to the club and an MD to Development Bank and it is disenginious of Rachier to feign ignorance or surprise at what is unfolding whatever the motive behind it maybe .
Running to the Patron may no t be the solution but as a matter of urgency , in the short term it could be helpful , but will lessons be learnt ? , this office never seems to learn or they just dont want to learn , knowing they will continue to steal then when they run into headwinds , somebody will come in to clean their mess .
This brings as back to the issues of a new constitution to allow as to restructure the club and align it with modern ways of running the club as a business , abolish all the unnecessary egocentric myriad of unstainable and unprofessionalpositions and have people chosen on the sole basis of their expertise , otherwise the crying and the perpetual gnashing of our now tired teeth will eternally continue
BREAKING….
Apparently it is alleged that due to the wrangles between the EC and the TB+ players, some infuriated players + TB last week leaked out confidential, unsubstantiated financial information (alleged unpaid taxes on transfer fees to the club, unpaid taxable player salaries and allowances, unpaid taxable competition earnings ) to KRA.
The issue of taxes is therefore under control and should NOT be a cause for ALARM. Hopefully !
@Jakoyo, issues to do with tax there is no reprieve but you have to present yourself and agree on a payment plan. What you can be pardoned are the accrued interests? AR just has to bite the bullet and meet KRA instead of feigning ignorance yet you has almost 11 EC members of which most have no portofolio
This guy basically has a mission if you have not noticed. Tells you the level the EC will go to sidetrack issues. Take note how he brings in the topic of infuriated players. The same way the EC brought in the tribal debate. It is really shamefull what Gor Mahia is going thru’ and how much those benefiting from these corrupt practices will go to cover up.
Jakoyo what are this meandering nonsense of casting aspersions on players and TB for EC’s stealing antics that have led us to this quagmire.Leaking what?Do you think Gor players or TB for that matter would have such vital data as to move KRA to close our accounts. What of the same debacle 2 years ago?Was it the players who furnished KRA with data then too since the 129M arrears is constant?We dont want innuendo’s painting our players in bad light as we know Ambrose Rachier diverts Gor money to his personal account including Sponsorship money b4 returning it back to the club akin to money laundering and therein lies our problem with the Taxman and Corruption,Pilferage and Looting synonymous with GM EC
Which TV airing for vs posts match
Which team is this bro? If you mean Gor, Y254 will air if am not wrong.
Updates on the proceedings at Kasarani please!
HT 1-0 Gor leading courtesy of a Kevin Ade Omondi strike. Kerr fields a totally different line up devoid of any regular starter. The boys are playing cautiously though holding up very well…Line Up: Odhoji Shaban
Wellington Ochieng
Onguso Wesley
Joachim Oluoch
Momanyi Charles
Cersidy Okeyo
Ondiek Bernard
Raphael Asudi
Lawrence Juma
Kevin Omondi
Samuel Onyango
Posta 1 (Paul Odhiambo 63′) Gor Mahia 3 (Kevin Omondi 34′, 52′, Samuel Onyango 70′)
84’ Posta Rangers 1 Gor Mahia 3
89’ Posta Rangers 1 (Paul Odhiambo 63′) Gor Mahia 3 (Kevin Omondi 34′, 52′, Samuel Onyango 70′)
I really hate it when a wall such as this, that affords as
the opportunity to discuss on serious issues partaining to the club is trivialised with pathetic innuendo and legless propaganda such as is being alluded that the tax problems facing the club emanates from the players+the TB , surely , even foolishness to some extent requires a certain level of
Intelligence and to imagine that foolishness has reached this dizzying level of mediocrity is surely frightening . . .
. .Could this be the effects of climate change ? , I am at a lose coz I am in limbo as to what to attribute it to .
FT: Posta Rangers 1 Gor Mahia 3
I totally agree with Dinga. Instead of foolish and blind following,its high time everybody in the leadership of the club is held accountable. Only that will stop the thievery going on. And my brothers let me tell you…..With propper accounting, GOR will get many sponsors and will rule Africa!!!!!!!!!
Lets never bee angry when called into account. Those who dont know should be made aware that the goverment is very serious on tax matters.
ODIEDO
Now i dont know which is the 1st 11 team…..
Boys you are different team.
@Wuod Suba, I too do not know first 11 and second string team. Some bloggers had dismissed Kevin Ade as passenger but this lad just need a good frame of mind to perform. A passenger scoring two goals yawa!!!!!!!
Let us learn to appreciate our players and encourage them when they are going a difficult moment in life. There are ups and downs in all our aspects of life and with support, encouragement, motivation, counseling, our players can unleash the potentials in them.
That Gor team which has beaten Posta must be third eleven not even second. Keep up boys we are proud of you despite the rotten and inept EC led by Rachier.
back to the same financial issues again. Gor Mahia needs a sound financial system with a proper financial manager. Remove that post of treasurer