KRA fails to explain why Gor Mahia is subject to harsher treatment
According to a story published by capital FM, the Kenya Revenue Authority (KRA) has refuted allegations it is targeting specific clubs in their purge against tax-defaulting local football outfits.
In a statement, the taxman also advised affected teams on how to resolve claims lodged against them for back taxes, penalties and interest.
Kenyan Premier League (KPL) champions, Gor Mahia, announced Thursday they were broke after losing sponsorship and being slapped with a Sh118m tax lien by KRA with chairman Ambrose Rachier alleging the taxman’s move was a witch hunt against K’Ogalo.
“A number of football clubs were found not to be filing returns or paying relevant taxes e.g. PAYE for their employees and players as well as withholding taxes from those engaged on contract for example coaches.
“It is important to note that Sporting Clubs are required by law to withhold and remit payroll taxes (Pay As You Earn) as well as withholding taxes where they apply as part of Statutory deductions under Sections 37(1) and 35 (1) of the Income Tax Act Cap 470,” KRA said in a statement signed by acting Deputy Commissioner, Marketing and Communications, Ezekiel Maru.
“Under the Income Tax Act, Sporting Clubs are not exempted from making returns and such returns must be accompanied by audited accounts.
“In the absence of a return the Commissioner is empowered by law to carry out an assessment of and to estimate taxes due and any interests that may have accrued thereof,” Maru explained.
“KRA is committed to enhancing voluntary compliance through informed awareness. In this regard, the Authority has put in place elaborate educational programmes targeting existing and potential taxpayers.
“Clubs who may need guidance/assistance on how to comply should contact their relevant tax stations or contact Samuel Aboge on email: Samuel.Aboge@kra.go.ke or Telephone 2813130,” the statement added.
But the KRA still has not explained why it is only Gor Mahia that is having all its accounts frozen. Reports suggest that most KPL teams do indeed owe back taxes. But there have been no reports of any other teams having their accounts frozen.
Further to that , there is no explanation on whether Kenya’s track athletes have complied with stipulations laid out by the KRA.
While launching mobile pay bill number 350100 to raise funds from their fans on the Safaricom platform, Rachier claimed KRA were strangling the revenue streams of the local giants by targeting their income sources that were boosted by the KPL television rights deal with SuperSport and until March, Brookside Dairies sponsorship.
“KRA’s effort is to make sure we don’t receive money and we won’t be surprised if somebody comes at the gate to grab our entry collection because there is that deliberate effort to make sure we don’t obtain money and I’m wondering why Gor since no other club has been approached,” he claimed, ignoring archrivals AFC Leopards and Western Stima also came under the taxman’s crosshairs.
Mmmmmh!, kra Ichieno wuu? sawa
I think AR is being economical with the truth.
Whatever u may think of KRA the authority has laid down operational proceedures.
1. On receiving info it MUST & WILL first get the taxpayers side of the story.
2. An assesment is only made against a non cooperative taxpayer or one who provides misleading info and/or cannot provide collaborating info e.g audited accounts
3. The drastic step of freezing accounts is applied 2 taxpayers who cannot counter the KRA assessment & subsequent demand notices..
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KRA goyo kod gor siasa.why is it that they lack explanation? may our chairman and other legal experts in gor fraternity pursue this matter faster.i am really stressed with this kra thing.fans this is the time for our support to kogalo.blessings above
All this takes time & I hear KRA started investigating GM last year in August. No wonder members were being fed with ridculous gate collection figures.
I also pose what is the Mpesa Bill no. for?
Is it 2 pay the KRA fine (not build Gor) coz KRA definitely has power 2 freeze those funds also.
Is Gor Foundation recognized by EC?
How can u trust AR & co with GM funds after the KRA saga which proves beyond doubt that office has no records/accounts to defend its position.
Am fully with Oswozo on this!
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Just been to the official website and I received a pleasant surprise. All the figures are there.
Let us keep up the good work and raise even more funds.
Personally, I feel bad about this KRA business especially when I see how the boys are trying hard on the pitch.
We are top of the league and it’s such challenges that make Kogalo what it is. Keep the fire burning.
please please please bloggers at times we have to put politics aside let us put our hands together and help the club.please some of us likes politics so much,at times we have to close our eyes and rescue our sinking ship.Let us put politics aside please.
Thank you Oduor12@2….mwenye macho haambiwi tazama!!we shall be vindicated in the end…..watch this space!!!
@oduor12 and oswozo moziek during the solomonic times two women were fighting over a baby.one of the women did not mind having the baby cut into two.another said no to that since the baby would die but she loved the baby very much.by wisdom the king adjudged that the protector was the real mother….i wonder who loves GOR MAHIA GENUINELY
This odour 12 does not love Gor at all, to him anything hurting us is good so long as he can blame it on AR that’s nonsense. When matters are this way its time for ceasefire and we should all come together as a family, criticism all the time will not help anybody. For those of us who want to help the club let’s give first see how it goes coz the team must move on anyway.
I‘ve already contributed 2000 for the well being of my club. Guys let’s be cohesive in this great cause to contribute any amount that one afford and let’s avoid petty and misplaced critisism at this crucial moment. I have confidence that we will overcome this turbulent time.
It is time to call a spade a spade. is a great miser who is happy and jumping up and down when there is problem in Gor Mahia. Oduor12, if you had lost to be an official in the last election, there is always next time you can try again. At this time we are in a crisis and this is the time for us to pull together and help the team. Your continued attack on the chairman will not help the club at all. I do not know why you have personal grudge or vendetta with the chairman or could he have ran away with your girl friend.
While we are struggling to salvage the club some of us as usual are criticising. As far as I know this club does not belong to AR and the EC. It’s for all of us. So instead of discouraging fans let’s help the team. By yhe way this is an optional initiative for those who have the club at heart.
Bloggers i hate this odiwuor 12 guy why lie …?why discourage other people who are willing to uplift the club through their contribution and yet you are not willing.please odiwuor12 give us space.Let us not be our own enemies,please let us not spit venom all the times.
Guys, this issue we brought it on ourselves. From the KRA official on Radio Jambo today (26/4/14) it’s our club which did not remit the annual returns as required by the tax authorities. As a society Gor does not need to pay tax but needs to remit the annual returns which our office did not do even when after being consulted by the taxman. The team also needs to remit PAYE or the players to do that on a personal note (though it’s better done/deducted during the salary/allowance payment) . Looks like it’s an issue of not having the structures at the secretariat. As I said before an elected treasurer is not necessarily someone who knows the accounting requirements of the office. This is s good wakeup call for us so that we need to have a job description for each and every official, the many deputies included. We should also set up a minimum requirement for each office e.g. the organizing sec. should be someone qualified and competent in PR, the treasurer someone with accounting qualification and a CPA or ACCA.
The rest can be trustees or elders of the club to provide direction.
The other thing is that we stop chest-thumping, meet KRA and agree on the amount and payment method. Definitely KRA’s estimate was to jolt Gor to act and meet them as they are not realistic. For example sales of jerseys can have attracted very little finances to Gor as the club is not selling the jerseys directly. It’s like Arsenal paying tax for the jersey I bought from Muthurwa.
Now we need to see the leadership we elected leading from the front instead of whipping our emotions on Tv and Radio.
All the same we will continue to Mpesa as we ask for accountablity
Sometime last year, someone by the name of “Gor Player” posted on here that Gor players were getting their salaries in a bahasha and that the team was being investigated by KRA; many here did not believe him and hauled insults at him. “Gor Player” also stated that some players were not amused by the fact that some of their colleagues were getting a bahasha that was more fat than theirs. This was also dismissed by many here. We now hear directly from the taxman that he indeed wants his money from Gor. It has also been recently reported that there is friction between players as a result of certain players getting way more money than others…..I think “Gor Player” is or was indeed a Gor Player last year (or maybe still is) or surely a prophet whose prophesies have now come to pass.
Gor Player, please speak to as some more
@Ingo there is no law that says that bahashas cannot be used to pay staff their dues. So there is no problem there.
on some bahashas being fatter than others I believe you are working and knows that this is the reality. That’s why Ronaldo and Messi earn more than their colleagues and if you want to confirm this ask Oliech and Wnyama or even Mariga.
On KRA this is something we will surmount because when facts are presented I believe the dues will not be anything over 2m. Even Bayern President and Barca were involved in such a case when it came to Messi and Neymar Jr. This will not deter us from our mission
Hi Dan, My point here is that “Gor Player” is indeed credible and can be trusted.
Dan, if you also pay people through the bahasha, how can you appeal an unfair tax bill? At that point you do not have any ground to stand on and are at the mercy of the tax man.
Guys, seems we’ve been caught pants down. KRA tried as per the airwaves to get our EC to file it’s documents as per the LAW, but EC thought otherwise. Whether we jump, skip or whatever, we have to file our returns period. Rachier stop emotions and trumpeting, do all that is required to keep KRA off Gor Mahia legally. Weeping emotions or politicians to your side will not pay the taxes, it is availing audited records, and complying. MPESA is a good move, but if you would have strengthened the branches to be the focal point of membership, mechandise sells and activities, things would have been very smooth, please.
Jackie Oohmorelow issues zako za hating(or loving) ni shida yako.
THE FACT IS THAT KRA DOES NOT WAKE UP ONE MORNING & WRITE A DEMAND NOTICE & FREEZE A TAXPAYERS BANK ACCOUNT. GM’S FATE IS SUFFERED BY THOSE WITH NO EXPLANATIONS & WHO CHOOSE 2 ARROGANTLY IGNORE THE LAW/KRA.
AS U GIVE/NOT THESE R VALID QUERIES THAT EC SHOULD ANSWER!
Y NO ACCOUNTING RECORDS/SYSTEM SURELY. WE’VE A TOP LAWYER AS CHAIR TRUE/FALSE?
KRA MATTERS IS PURE APPLICATION OF INCOME TAX LAW?
ADRESS ROOT PROBLEM(S) NOT SYMPTOMS
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You are odiwuor12 and i will not bury my head under the sand when you are discouraging gor mahia fans who are ready to help the team.your arguments are always politicized and everyone in this blog can witness that,it is just last year that we did elections in gor mahia and you never contested.And again i will not forget reminding you that it is in this blog that someone told you that if this is the way you are running your family incase you have one then he pity you and i can support him and say it is true.you are atypical jaluo who will not get tired of politics,ever politicking ,please you have to change or else you may force us to say some other things in this blog that are not worth saying here.The way Dan has said it, once the officials sits down with KRA officials this tax will not be even more than 2 million,The issue we have at hand know is helping our beloved club from this pit that we are currently in as a club.
please odiwuor12 guy if you know you can not contribute and your work is just to discourage others who want to contribute for the team, it is better you keep off but not try to expose to us how you were brought up.Let us not be the type or the fans who celebrate at the downfall of our great club just because of you hate gor mahia officials.
To the ingo guy you have to know that your problems of BUKUSU,BUNYORE,TIRIKI,BUNGOMA and the rest are currently going on in your club afc leopards can you go and sort your issues out before you concentrate in you neighbours problems
To odiwuor12 i will not argue with you since i have seen you have even started playing politics with my name,this can only show you level of thinking and the type of being you are.please to the bloggers who are willing to contribute let us do so and leave alone the all time politicians in this blog.we have to know that our house is on fire right know and it wont do us any good if we are the people adding petrol or paraffin on it to keep on burning.
Ingo do You remember the saying “akufaaye kwa dhiki ndiye rafiki”? This is the time you should show that you are truly my friend. It is good that the lunch you promised to buy Mwakio and I never materialized. This is the time. Rally your troops to help us out of
quagmire the way you did against Esperance.
Jackie Ooooomooorelooow & Jamigori why such tirades, desperation?
Read & re-read ua rantings & ravings. U may actually b revealing that there’s more 2 ua GM relationship than soccer.Ati girlfriends yawa is that ua fertile imagination/ua relating ua experience(s).
FACTS REMAIN FACTS
Many (including u 2) agree that KRA’s figure is exergerated. But why wasn’t AR led EC able 2 counter it.
Ans=ARROGANCE,INCOMPETENCE ETC BY AR LED BLOATED EC.
WILL SAFCOM BEING TAX COMPLIANT DEFY ANY KRA ORDERS? THINK?
Ati Jackie Oooooooohhhhmooorelooooow hits the roof,throws tantrums, goes ballastic on account that I Oduor12 (he refers to me as Odiwuor12 & calls me names) am playing politics with his name.
I have really laughed today kweli this “nyani haoni kundule at all”.
By the way where is are tests carried out to find how much a fan loves GM or where are the GM loveometers bought?
Just asking?
Jamaneni! hata kama ni ku contribute itakuwaje watu wengine wana toa kshs.10. Guys, I dont think that whoever is contributing 10/- can only afford 10/- . This is not sadaka but a fund raiser. I think any serious k’ogalo fan will not contribute less than 200/-. It is about bailing the club out of financial crisis.Lets be serious in this situation. If we continue like this, how will we contribute even 5m/month by contributing 10/-
Barefoot my brother, Gor Mahia led by their Chairman were very gracious to Ingwe when we did our fund raising earlier on this year (for continentals); the Chairman by himself contributed KSH 60,000. Sisi kama mashemeji must reciprocate. We will walk together in this KRA thing. I will be sending my contribution of Ksh 3,000 on Monday. I’m also going to talk to others and see what we can do
The lunch deal is still on. If Gor wins the league, I will treat you and Mwakio for lunch at New Stanley Hotel. I’m a man of his words.
Odour 12 some of us know the tax law wacha hiyo upuzi yako, even if the tax was for ten years it cannot be that much, you are worse than ingo in fact am now convinced you are not a gor supporter, stupid.
Barefoot…tuko pamoja. I will send my contribution on Monday.I’m also talking to the Ingwe fraternity to see how best we can help. If Gor wins the League, I will buy you and Mwakio lunch or dinner at any hotel of your choice in Nairobi. I’m a man of his words
@ # 26 Jathur, If the team has been paying players and vendors in a bahasha (which means that bank statements will not reflect these payments),then what proof can Gor use to show KRA that they are in error? KRA has said that they used their best judgment to arrive at the 118 Million number (which includes late penalty by the way). The burden of proof is now on Gor to show that they (KRA) are wrong. with no appropriate bank records, mungu saidia…..I cant wait for the day Gor plays KRA lol
Why argue so much with empty headed chaps like odiwuor 12 who is always negative in everything going on in gor mahia.bloggers let us contribute for the team and put aside politics.seemingly this odiwuor guy was having some post in gormahia and he was bundled out that is why is always bitter.But the reality is we cannot move in one direction all of us ,every market has a mad man and these are the likes of odiwuor12 in this blog.Bloggers with me i was only testing it by 100/- and it went through and by end month i will send something good.Let us mobilize ourselves as gor mahia family and support the team financially.
To the guys who are arguing so much with the empty debes making a lot of noise without action you are wasting your time.JATHURGIJI AND OMOLLO,DAN and all the willing gor mahia fans Let us continue mobilizing the willing lot in gor mahia.
Jathur Gi Ji if u r truly knowledgeable of tax laws then u should b aware that the penalty 4 late/non payment of PAYE is 25% of the tax not paid. The tax not paid plus penalty then attracts a interest of 2% per month compounded.
Thats the killer, the compund interest factor.PAYE is computed monthly so each MONTH OF NONPAYMENT penalty+INTEREST ACCRUE.
EC has been singing that the monthly wage bill 4 GM is kes.2.7M. PAYE is abt 30% or kshs.810,000. Thats salo alone. Now do your maths CLEVER ONE
@oduor12, tax rate can’t be 30%. The 30% is applicable to top earners who are paid higher salaries refers to as tax bracket. Let us not dwell on what we do not know about tax unless you’re a tax expert.
Ooh Laaa La…!! “GIVE KRA and K’OGALO WHAT BELONGS TO THEM”….!! PERIOD..!
The law is an ASS and on this KRA/ GOR saga, let us reason like statesmen and not as the usual activist of this blog. With the enactment of the new constitution in 2012, all sportsperson ,artist or athletes ceased to be exempted from paying taxes and as a matter of fact they are required to file their Income/Expenditure returns in four installments annually (April,June,August&Decemeber). Any balance of tax payment should be cleared by 30 the April the following year and failure to do so will be liable to accrued penalties.
THAT IS THE LAW AND ALL TOP FLIGHT KPL TEAMS HAVE BEEN OFFICIALLY CONTACTED BY Income tax office through JACK OGUDA(Read KPL secretariat).
In a nutshell GOR has no escape route on this saga and given that RAO played politics with the issue when it was revisited in Jan 2013, the war has been taken right at his door step by dealing with K’Ogalo’s non-compliance ruthlessly. AR has thrown in the towel and clearly stated that our beloved club is financially crippled. The issue at stake is not about the ineptness of our EC or justifying the 118M but how to salvage our team and keep it afloat.
We are in this situation because of lack of basic structures and improper management establishment and practices. But the current situation requires personal sacrifice and in-depth understanding of the history of this glamorous club. I WILL STAND UP WITH K’OGALO AT THIS HOUR OF NEED , AS WELL AS REQUEST OUR EC TO COME OUT CLEAN , DECLARE AND FILE THEIR RETURNS DULY WITH KRA. Just give ceasar what belongs to ceasar… And let us also give abundantly to K’OGALO pay bill number.
AR please take this challenge as a blessing in disguise that will help the entire K’Ogalo fraternity to turn around the clubs fortunes. We must now pull together and read from the same page. Since what goes around, turns around , am personally convinced that the Pay
Bill number it is an idea whose time has come and we will be the main foundation to drive the club forward as long as we assured of transparency and accountability as stakeholders.
We have to start from somewhere and this the first step forward in transforming this club.The way BW and his TB has worked hard to revive the boy’s performance has really motivated me to include as part of my CSR, just same way I do part with my tithe at the end of my earnings. I will forward my Kshs 2500 monthly Pay bill number for April, but how i wish our EC could introduce some classified Gor MAHIA cards with biometric futures to target different categories of their fan base. I would not mind parting with 15000 Kshs annually subscription as card owner that will allow me to watch all the 15 home matches , inclusive of some free merchandize like an official home and away jerseys tagged in the name of my favorite player/s ,Gm branded umbrella, cap band scarf.1000 card holders will raise Kshs 15 million shillings which enough to sort out salaries expense for six months.
FOOD 4 THOUGHT AR & TEAM. TUKO PAMOJA.
@ MWAKIO according 2 AR the lowest GM player gets a salo 40K per month while the highest gets 170k. GM has even split the beans on their bonuses.
Now to PAYE brackets the
first 10,164 is taxed @ 10%,
the next 10,164@15%,
the next 10,164 @20%,
next 10,164 @ 25%
& any balance over 40,664 is taxed what you call top earners rate of 30%.
So any monthly earnings above 40,664 is taxed at the highest rate of 30%. 4 GM’s wage of kshs.2.7M one can assume that average monthly earnings r maybe 80K. ….
Its only by GM’s EC availing to KRA the records can the correct amount be ascertained.
Either way GM’s monthly PAYE will still be significant between 500-800K. Then the penalties & compound interest come into play.
There is also the case that after the saga the wage bill will increase by 20% as the players are used to getting a certain amount so GM might bear the PAYE burden. Hope ave shed a little light comrade
Great, wonderful @ Ogango Trailor. How i wish Oduori 12 read this post
@oduor12, you have got it totally wrong snd you do not know what you are saying and posting. Salaried prople are taxed according to the tax bracket they salaries are falling into but not on those clusters you are quoting above. Get your facts right and stop misleading the bloggers.
@ Mwakio you’ve displayed your ignorance on taxation of salaries. Get an accountant to assist you understand this issue otherwise your arrogant ignorance/stance on a straight forward tax computation is quite comical.
@Oduor 12 let us contribute but u r free to suggest to us how we can make GOR MAHIA GREATER.
Correction the first tax bracket is 0 to 10,164 then the next 3 are 9,576. So in fact any earnings above around 39,000 are taxed @ 30%.
@ T.O.O by all means contribute coz everybody has a point that is helpful one way or another. My advise for now yes our house is burning but is why go fetch water from the river with a straw basket!