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{
    "id": 290999,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/290999/?format=api",
    "text_counter": 37,
    "type": "speech",
    "speaker_name": "Mr. Githae",
    "speaker_title": "The Minister for Finance",
    "speaker": {
        "id": 159,
        "legal_name": "Robinson Njeru Githae",
        "slug": "robinson-githae"
    },
    "content": " Mr. Speaker, Sir, I beg to reply. (a) I am aware that Kingsway Tyres and Automart Limited PIN No.P000609825C and VAT NO.0021199L owes tax arrears for Income Tax and Value Added Tax (VAT) which arose through a KRA audit carried out in the year 2003 and out of which, assessments were raised on account of un-declared income and incorrect expenses. (b)The tax remains uncollected for the following reasons:- (i) Lack of funds in the officially operated bank accounts by Messrs Kingsway Tyres and Automart Limited where taxes would have been recovered from. (ii) Court orders restraining Kenya Revenue Authority (KRA) from enforcement action. This is Miscellaneous Application No.1288 of 2004. (iii) Irregular transfer of the company’s business to another continuing entity from Kingsway Tyres and Automart Limited to Kingsway Tyres Limited which operates normally filing tax returns and paying resultant taxes. (iv) Challenges of proceedings against a company which is, for all practical purposes, dead with no known assets or property. (c)The following measures are currently being undertaken to recover the outstanding taxes:- (i) Tracing of assets that may have been irregularly transferred to the other entities. Already, one property has been identified and charged, while the process of charging a second property is ongoing. The process of disposal of the charged property is in progress. However, I wish to mention the process of asset tracing is a tedious and laborious one, and which consumes significant amount of time. (ii) Evidence is being collected to support a case of willful intent to evade tax on the part of directors through the irregular transfer of business to Kingsway Tyres Limited. (iii) Interventions have been made to prevent attempts to deregister Kenya Tyres and Automart Limited as a company and the management structure remains preserved for any future actions, including both criminal and civil suits. (iv) In addition, I wish to state that I am going to propose taxation measures in the next Finance Bill that will address the abuse of corporate structures by persons intending to commit illegal acts, including tax evasion. Thank you, Mr. Speaker, Sir."
}