Sportpesa in headlock with tax man, what next for Ronald Karauri-led company.

Sportpesa risk being charged in court of law
Photo|Courtesy
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Giant sports betting firm Sportpesa has received a stun warning from tax man to comply on defaulted tax within fourteen days.

In a notice letter seen by News 9 Kenya, KRA caution the betting company for failing to comply with Income Tax Act Cap 470 that provides for taxation of winnings from betting and gaming.

Withholding tax

The letter dated April 9, 2018 also states that Sportpesa failed to comply with withholding tax provisions provided for in subsection 35 (l) (j) and 35 (3) (i).

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Withholding tax is a tax deducted at source, when the payer of certain incomes is responsible for deducting tax at source from payments made and remitting the deducted tax to KRA.

Sportpesa is accused by the taxman for failing to remit this tax amounting to Ksh 14 trillion, accrued since October 2018.

Chief Executive officer Ronald Karauri sought refuge in a 2014 court order where the company was barred from making any deductions from any person’s winnings.

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