11 vice chancellors face probe over Sh9.7bn tax arrears
The University of Nairobi. Public universities have been urged to be tax compliant. PHOTO | FILE | NATION MEDIA GROUP
What you need to know:
- The vice chancellors will also be investigated in their individual capacity on their tax compliance status.
- In the recent past, directors of several firms, including Keroche Breweries, have been charged over tax evasion.
Vice chancellors of 11 public universities are facing probe over failure to remit Sh9.7 billion as Pay as You Earn (PAYE) to the Kenya Revenue Authority (KRA).
KRA’s Commissioner for Domestic Taxes, Ms Elizabeth Meyo, said they will commence prosecution of the vice chancellors since they are the bona fide accounting officers.
They are: University of Nairobi, Kenyatta, Technical University of Kenya, Multimedia, Garissa, Pwani, Jomo Kenyatta, Egerton, Maasai Mara, Moi and Rongo.
However, Ms Meyo said some of them have reached out to KRA and agreed on payment plans, reducing the figure from Sh10.4 billion to Sh9.7 billion.
"So far, six of the 11 universities have paid Sh730 million to the taxman between July and September, 2019. The institutions of higher learning that have not reached out to KRA in regard to their tax matters are urged to do so with immediate effect or face the law," she said.
DRASTIC STEPS
Further, the taxman is also targeting the directors of the companies transacting with the institutions in a bid to prosecute those that have not remitted Withholding Value Added Tax.
"Investigations on these companies are ongoing and those found culpable will be charged before a court of law,” she said.
The vice chancellors will also be investigated in their individual capacity over their tax compliance status.
Ms Meyo said authority has embarked on an aggressive tax recovery strategy. In the recent past, directors of several firms, including Keroche Breweries, have been charged over tax evasion.
