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courtesy of the Standard<\/p>\n
After asking Kenyan athletes to pay taxes, Kenya Revenue Authority (KRA) has turned its attention to local clubs. League champions Gor Mahia has been hit with a Sh118 million income tax demand note, a move that could easily bring down the club, especially after it lost a key sponsor last month. The club currently has no shirt sponsor after Tuzo withdrew their Sh29 million-a-year support. The taxman wrote to Gor Mahia last week demanding that the club pays the said amount or risk being slapped with fines. The letter from KRA is copied to Kenyan Premier League (KPL), the custodian of broadcast sponsorship money from SuperSport.<\/p>\n
Kenya Revenue Authority demands Sh118m from Gor Mahia Updated Tuesday, April 22nd 2014 at 21:16 GMT +3 0 inShare Kenya Revenue Authority demands Sh118m from Gor Mahia Gor Mahia fans during a match. The club currently has no shirt sponsor after Tuzo withdrew their Sh29 million-a-year support. [Photo: File\/Standard] By Gilbert Wandera Nairobi, Kenya: After asking Kenyan athletes to pay taxes, Kenya Revenue Authority (KRA) has turned its attention to local clubs. League champions Gor Mahia has been hit with a Sh118 million income tax demand note, a move that could easily bring down the club, especially after it lost a key sponsor last month.<\/p>\n
The club currently has no shirt sponsor after Tuzo withdrew their Sh29 million-a-year support. The taxman wrote to Gor Mahia last week demanding that the club pays the said amount or risk being slapped with fines. The letter from KRA is copied to Kenyan Premier League (KPL), the custodian of broadcast sponsorship money from SuperSport. Gor Mahia Secretary General Chris Omondi confirmed they have received the demand note and have even held a meeting with the taxman. A second meeting is expected to be held next week. \u201cOur position is that Gor Mahia is a society and therefore are not supposed to pay taxes. On the question of income tax, it is a very tricky area and we are asking why only Gor Mahia has been asked to pay such an amount of money.<\/p>\n
\u201cWe have also demanded an explanation as to how the figure was arrived at because it looks like there was a lot of estimations. We are having a second meeting and hopefully it can be explained to us,\u201d said Omondi. Omondi further revealed that the letter from KRA, which was also sent to their former sponsors Tuzo, forced them to withhold the players\u2019 salaries. KPL Chief Executive Jack Oguda said he was aware of the new development and had convened a meeting with Gor Mahia officials on Wednesday to discuss the way forward. \u201cWe do not know how the figure has been arrived at and have scheduled a meeting with Gor Mahia officials to discuss the matter,\u201d said Oguda.
\nOguda said last year, AFC Leopards were also asked to pay Sh4 million in tax areas by the KRA. At the beginning of the year, KRA issued demand notes to various top athletes to pay taxes. The move was widely criticised by the athletes and some even threatened to boycott representing the country in major events. The taxman, however, received backing from two former athletes who asked their colleagues to co-operate. The 1991 World 10,000m champion Moses Tanui and the man who won in the 5,000m at the same championship, Yobes Ondieki, said paying taxes is a responsibility of all citizens and all should comply.<\/p>\n