British American Tobacco (BAT) Kenya may quickly face authorized and monetary repercussions following allegations of tax evasion amounting to Sh3.6 billion ($28 million) between 2017 and 2018. Additionally, questions have been raised over discrepancies in its monetary data, with considerations surrounding Sh9.6 billion in its books.
The Kenya Revenue Authority (KRA) has confirmed that it’s at present reviewing the findings of a report detailing these claims. In a press release to the press, the Commissioner for Domestic Taxes reaffirmed KRA’s dedication to implementing tax compliance.
“KRA takes these allegations seriously and remains dedicated to upholding the integrity of the country’s tax system. We are thoroughly examining the findings and will take the necessary action. All companies operating in Kenya must adhere to tax regulations, and any indications of non-compliance will be addressed as a priority,” the commissioner acknowledged.
However, BAT Kenya has strongly denied the allegations. Managing Director Crispin Achola dismissed the claims as deceptive and inaccurate, asserting that the corporate strictly adheres to tax laws and monetary reporting requirements.
“Our financial statements undergo rigorous audits by both external auditors and regulatory bodies, including for the years under review. The figures cited in the report do not reflect the reality of our financial disclosures,” Achola emphasised.
He additional revealed that in June 2024, BAT Kenya acquired inquiries from The Investigative Desk relating to the alleged inconsistencies however argued that the methodology used to research the corporate’s information was flawed.
“BAT Kenya unequivocally rejects these allegations, including claims about discrepancies in our published financial reports. We comply with both local and international reporting standards, and our financial disclosures are publicly available in our Annual Reports and audited Financial Statements,” he added.
Achola additionally accused the journalists behind the report of exaggerating the figures and hinted that the corporate is assessing the potential affect of the allegations on its operations and repute.
As KRA continues its evaluate, all eyes can be on the tax authority to find out the following plan of action on this unfolding controversy.
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