KRA Bars Dissolution Of 1092 Companies Over Tax Arrears

The Kenya Revenue Authority (KRA) has lodged objections barring thousand and ninety-two (1092) companies from intended dissolution and striking off from the Registrar of Companies for the period July 2022 to March 2023 before the settlement of tax liabilities.

Cumulatively, these companies owe a total of Kshs 1,150,541,181.49 in unpaid taxes to KRA.

These statistics caught KRA’s attention considering the companies submitted the applications for voluntary strike-off while still owing tax debts to the Government. The companies seeking voluntary dissolution vary across all sectors and range from single proprietor businesses to 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 has 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.

Related Content: 15 Reasons Why Kenya Has A Shortage Of Forex Reserves, Russia Vs Ukraine War Has Nothing To Do With It