NAIROBI, Kenya (AX) — Hashi Energy, a key player in the petroleum industry, hit a wall attempting to shake off a Sh7 billion ($54 million) tax demand from Kenya Revenue Authority (KRA). This tax debacle only adds to the company’s economic woes as liquidation looms large.
Presiding over this financial conundrum, Robert Mutuma and the Tax Appeals Tribunal concluded that Hashi Energy was unable to furnish adequate proof to counter KRA’s tax calculations spanning 2017 to 2022. Furthermore, the company didn’t submit its self-assessed tax returns for both 2021 and 2022, undermining its own defense.
“Under these circumstances,” the tribunal announced, “the Respondent (KRA) acted within its jurisdiction, using available data and discretion as directed by Sections 24 (2) and 31 (1) of the Tax Procedures Act,” essentially backing KRA’s claims.
KRA had initially slapped Hashi with a Sh7.1 billion ($55 million) tax bill, later adjusted to Sh7.12 billion ($55.3 million) after digging into the company’s ledgers. This examination swept through various tax areas—corporate tax, VAT, PAYE, and withholding tax. Hashi refuted these findings, attributing inaccuracies to delays in audits, but the tribunal deemed its reasons unconvincing.
The tribunal’s verdict piles onto the cash company’s hurdles, propelling Hashi Energy into voluntary administration. Plans to liquidate assets, including property, are set in motion to clear its debts. The tax fiasco just exacerbates the ongoing liquidation saga, clouding the company’s prospects within Kenya’s energy scene.
Now that the tribunal’s ruling stands as is, Hashi Energy’s pathways to tackle its mounting liabilities are dwindling. Amid the liquidation storm, the company struggles to find footing and balance its books.
Edited by: Ali Musa
alimusa@axadletimes.com
Axadle international–Monitoring
