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{
    "id": 686561,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/686561/?format=api",
    "text_counter": 22,
    "type": "speech",
    "speaker_name": "Hon. Midiwo",
    "speaker_title": "",
    "speaker": {
        "id": 184,
        "legal_name": "Washington Jakoyo Midiwo",
        "slug": "jakoyo-midiwo"
    },
    "content": "THAT, due to liquidity problems and seeming desire to fleece the company, it has hurriedly offloaded most of its fixed assets. In particular, the EABL sold 15 acres at its Ruaraka Headquarters and its glass bottle manufacturing subsidiary company. The company has also been selling property and assets in Kisumu, Mombasa, Nairobi, Thika Depot, Garden City Mall, Head Office Land and building, the canteen, bottling plant among others. The company has also been transferring deposits from local banks to the UK and other EU nations while borrowing heavily locally THAT, part of local staff believe that European investors may be intending to fleece the company, disposing most of its local assets such as land, buildings and stealthily repatriating revenues to Europe and then leave it a financial skeleton akin to the recent case of one of the controlled telecommunication companies. THAT, the EABL has been engaging in transfer, pricing and tax evasion practices through its biggest shareholder Diageo PLC with the aim of transferring profits to the United Kingdom (UK), which has favourable tax regimes, hence irregularly denying the Government tax revenue. Even if Section 85 of the Tax Procedures Act, 2015 gives the Kenya Revenue Authority (KRA) powers to investigate pricing arrangement between local units of multinationals with their parent companies and overturn any that it deems to have been structured with intention to avoiding tax, the Commissioner-General is yet to initiate any investigations. THAT, a glance at the financial statements of EABL for the 2014/2015 Financial Year can also shed light on the malpractices relating to tax evasion. For instance, in the year ending 30th June, 2014, the EABL had a net revenue of Kshs60 billion and Kshs64 billion for the financial year ending 30th June, 2015. However, the tax remitted to the Government was Kshs3.5 billion and Kshs4.6 billion for the 2014 and 2015 financial years respectively. The amount of tax remitted to the KRA does not correspond with their net revenue for the 2014/2015 Financial Year indicating possible engagement in tax evasion practices which is clear violation of the Tax Procedures Act, 2015."
}