British American Tobacco (BAT) Kenya could soon face legal and financial 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 financial records, with concerns surrounding Sh9.6 billion in its books.
The Kenya Revenue Authority (KRA) has confirmed that it is currently reviewing the findings of a report detailing these claims. In a statement to the press, the Commissioner for Domestic Taxes reaffirmed KRA’s commitment to enforcing 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 stated.
However, BAT Kenya has strongly denied the allegations. Managing Director Crispin Achola dismissed the claims as misleading and inaccurate, asserting that the company strictly adheres to tax regulations and financial reporting standards.
“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 emphasized.
He further revealed that in June 2024, BAT Kenya received inquiries from The Investigative Desk regarding the alleged inconsistencies but argued that the methodology used to analyze the company’s data 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 also accused the journalists behind the report of exaggerating the figures and hinted that the company is assessing the potential impact of the allegations on its operations and reputation.
As KRA continues its review, all eyes will be on the tax authority to determine the next course of action in this unfolding controversy.
Related Content: BAT Denies Owing KRA Ksh 9.6 Billion In Taxes
