Connect with us

Hi, what are you looking for?

Cyprian Is Nyakundi


Tax Evasion: KRA Detains Consignment Of Jameson Whisky

The Kenya Revenue Authority (KRA) has detained a large consignment of the popular Jameson Irish Whisky following a disagreement with its importers’ overvaluation of the product, Business Daily Reported today.

The taxman is demanding Sh700 million arrears from Pernod Ricard Kenya Limited, the distributor and marketer of Jameson, who has moved to court seeking the release of its products.

KRA wants the importer to adjust the custom price of the goods for purposes of tax computation but Pernod Ricard Kenya has objected to the demand and filed an appeal with the Tax Tribunal.

KRA in January sent Pernod Ricard Kenya a demand notice for Sh697 million covering the period between July 2012 and December 2016 on grounds that an audit had revealed massive under-declaration of the value of its imports.

Pernod Ricard moved to the High Court after KRA detained a consignment of Jameson imports. The firm argues that it should be allowed to continue in business pending a determination of its appeal before the Tribunal on the same matter.

KRA had on July 3 agreed to release the four consignments pending determination of the court case.

But the deal never materialised causing Pernod Ricard to file a fresh application accusing KRA of refusing to release the consignment even after the importer provided a bank guarantee.

The firm argues that it continues to incur heavy warehouse charges and is running out of supplies to service its customers.

KRA has opposed the application noting that the firm had enjoyed restrictive benefits of being the only dealer, making it difficult to compare transactional values.

The taxman argues that after assessing the transactional value by independent dealers in the market, it was established that Pernod Ricard had suppressed the custom value of its products.

KRA says the firm’s undertaking to secure customs revenue prior to the consent of July 3 was rejected since it was not one of the mechanisms anchored in law.

The taxman says Pernod Ricard has an option to pay the tax based on the uplifted value and apply for a refund in future in the event a decision is made in its favour.

But on the other hand KRA says not collecting tax will prejudice the public by hampering service delivery by the government.

Would you like to get published on this Popular Blog? You can now email Cyprian Nyakundi any breaking news, Exposes, story ideas, human interest articles or interesting videos on: [email protected] Videos and pictures can be sent to +254 710 280 973 on WhatsApp, Signal and Telegram.



Click to comment

You May Also Like


A Kenyan living abroad has narrated how a brief December holiday expedition to his motherland met a calamitous twist when he decided to visit...


A teacher posted at a popular learning institution in Kakamega County has become the latest talking point across academic forums on social media after...

Hot Topics

The results of a post mortem examination of Esther Wambui, the lady whose body parts were found stashed inside a suitcase on Monday, 17th...


Disgruntled workers from a local manufacturing firm have come out to protest against improper treatment by their employer. In a message sent to,...

Copyright © 2021 Cyprian Is Nyakundi.

%d bloggers like this: