BETTING KENYA Betting firms inflating sponsorships to avoid taxes 12 months ago Szarlot Post Views: 345 Kenya Revenue Authority (KRA) domestic taxes chief manager Miriam Sila addressing journalists in Nairobi on taxation in the betting sector on March 28, 2023. Betting firms have been flagged for inflating costs of sponsorships and community projects to reduce their tax burden, denying the country millions in corporate taxes. Miriam Sila The Kenya Revenue Authority (KRA) says most betting companies claim to support local football clubs and other charities as part of their corporate social responsibility (CSR) to legally shield themselves from paying their dues, as such funds are not taxed. KRA chief manager of domestic taxes, Miriam Sila, said Tuesday that the agency barely collects corporate income taxes as most of these companies report losses. Ms Sila noted that betting firms have been seeking tax exemptions for their CSR from the Treasury Secretary. “And it is not small money. Once you have received the exemption from the Cabinet Secretary, who are you to question?” – Ms Sila posed. The court has since termed the tax breaks’ nod Treasury unconstitutional without the approval of Parliament. Withholding tax KRA says the tax breaks have been running into hundreds of millions and going on for as long as six years. “This reduces the corporation tax,” – said Ms Sila. The law also allows gaming operators to enjoy exemptions from withholding taxes on advertisements, which the taxman says they are overstating. “There is also a tendency to inflate advertising costs,” – said a KRA official who sought anonymity. While it is not mandatory for the operators to financially support local sports clubs, they are expected to show how they spend on CSR activities. Last year, Betting Control and Licensing Board (BCLB) chief executive Peter Mbugi directed all gaming operators to disclose activities, amounts and beneficiaries of their corporate social responsibility spending. Mr Mbugi noted that while most of the firms claimed their marketing spend is CSR or pledge to support local football clubs and community projects, they did not actually spend the money. Some betting companies make supernormal profits, with a recent revelation that SportPesa made a net profit of Sh12.9 billion for its owners in Kenya in its first five years of operation, underscoring the lucrative business. Kenya betting laws do not specify how much companies should spend on CSR activities unless they are public lotteries raising funds for social services, welfare and relief of distress. BCLB has the authority to order public lotteries to spend at least 25 percent of the gross proceeds on the object for which the lottery is promoted. Source: nairobitimes.co.ke About Post Author Szarlot I am a fan of casino games especially roulette and blackjack. After that I analyze current events in the gambling industry. See author's posts SzarlotI am a fan of casino games especially roulette and blackjack. After that I analyze current events in the gambling industry. Facebook Twitter LinkedIn Email Print Tags: Betting Control and Licensing Board, betting tax, Kenya, witholding tax Continue Reading Previous The latest gaming trends in NigeriaNext BangBet Kenya: the ultimate online gaming and betting destination More Stories BETTING BURUNDI 1xBet supported women with albinism in Burundi 4 days ago Tools BETTING NIGERIA PalmPay And BetKing Promote Responsible Gaming In Nigeria 4 days ago Samuel BETTING SIERRA LEONE Sierra Leone welcomes betPawa 4 days ago Samuel BETTING GHANA The captivating world of sports betting in Africa 5 days ago Samuel BETTING IVORY COAST FL Entertainment eyes further African growth after revenue jump 6 days ago Samuel BETTING NIGERIA Should sports betting be banned or regulated? 1 week ago Szarlot BETTING SENEGAL GR8 Tech partners with Mojabet 1 week ago Samuel BETTING NIGERIA Bet9ja Breaks Silence After Nigerian Man Wins N110 Million 1 week ago Samuel BETTING GHANA New gaming firm Odibets enters Ghana’s betting market 1 week ago Szarlot EXPERTS HOT NEWS KENYA Understanding Responsible Gambling 1 week ago Samuel BETTING KENYA Kiron Interactive and Betika’s Kiron.Lite partnership 2 weeks ago Samuel ANGOLA BETTING Melbet Angola — Leader in The World of Sports Betting 2 weeks ago Samuel 1 thought on “Betting firms inflating sponsorships to avoid taxes” Bookmarkers are businesses and they have to take advantage of any loopholes to reduce their expenses especially the punitive taxes by Kenya Revenue Authority. Reply Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment. Δ This site uses Akismet to reduce spam. Learn how your comment data is processed.
Bookmarkers are businesses and they have to take advantage of any loopholes to reduce their expenses especially the punitive taxes by Kenya Revenue Authority. Reply