Kenya Revenue Authority Bars Closure Of Companies Owing $8.8 Million

Reading Time: 1 minute

The Kenya Revenue Authority (KRA) has lodged objections barring one thousand and ninety-two companies from intended dissolution over $8.8 million tax debt.

“These statistics caught KRA’s attention considering the companies submitted the applications for voluntary strike off while still owing tax debts to the Government,” said KRA.

The companies seeking voluntary dissolution vary across all sectors and range from single proprietor businesses, family-owned firms and local subsidiaries of international firms.

During the period July 2022 to March 2023, the companies, through the Registrar of Companies, issued ninety (90) day notices through the Kenya Gazette alerting the public of their intended voluntary dissolution. The notices invited the public to share any reasons why the companies should not be dissolved.

KRA raised concerns and demonstrated to the Registrar why the companies should not be dissolved, pending unsettled tax liabilities.

The Companies Act 2015 requires the companies to provide copies of their application for voluntary dissolution to all their creditors, including the KRA, within seven (7) days of submitting applications to the Registrar of Companies.

KRA requires directors of companies due for closure to pay their tax debts before submitting their applications to the Registrar. This will ensure the companies are compliant and that the tax issues are resolved amicably.

©Standard Gazette, 2021. Unauthorized use and/or duplication of this material without express and written permission from this site’s publisher is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Standard Gazette with appropriate and specific direction to the original content.
Leave A Reply

Your email address will not be published.

Translate »