High Court rules winnings or betting tax is an income and is subject to taxation and the tax rates prescribed in the Income Tax Act.
KRA was demanding Sh1.6bn from the betting firm but SportPesa argued that the taxman had no powers to use agency notices to collect winnings.
KRA said the betting firm had conceded to unpaid tax but failed to settle the amount.
The Kenya Revenue Authority (KRA) has been given the nod to enforce the collection of winnings or betting tax using agency notices, as they are income and subject to taxation.
In a win for the taxman, High Court judge Alfred Mabeya said winnings or betting tax is an income and is subject to taxation and the tax rates prescribed in the Income Tax Act.
