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{
    "id": 291008,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/291008/?format=api",
    "text_counter": 46,
    "type": "speech",
    "speaker_name": "Mr. Githae",
    "speaker_title": "",
    "speaker": {
        "id": 159,
        "legal_name": "Robinson Njeru Githae",
        "slug": "robinson-githae"
    },
    "content": "Mr. Speaker, Sir, I did not give two reasons. I actually gave four reasons why we have been unable to collect the amount. On the court case, yes, I agree that the previous commissioner in charge of legal services was able to navigate this case and actually won it in favour of KRA, and that was why the KRA was then able to levy distress on the company. What the hon. Member is saying is actually what we are suspecting, that there may have been collusion; but you are aware that in law these two companies are separate entities. That is why in my Finance Bill I will be amending the Income Tax Act to provide that where in the opinion of the Commissioner-General a limited liability company has transferred its business to another entity then the directors remain personally liable for the tax arrears that may not have been paid. I am saying that because if you look at the names of the directors, not all of them are in both companies; some are there while some are not there. The new company, that is Kingsway Tyres Limited, is actually tax-compliant. It pays all its taxes on time. So, the opinion that KRA has received is that they require to do more to be able to connect the two companies; but as of now, in law, they are different companies and they have different directors and different bank accounts. The new one is tax compliant; it is paying its taxes on time. That is the legal bit. However, for the previous company, I can confirm that it has no assets."
}