The Kenya Revenue Authority (KRA) has filed an objection barring 1092 companies from closing their businesses before the settlement of their tax liabilities amounting to Kes1.15 billion.
After the businesses submitted their applications for voluntary strike-off while still owing taxes to the government, Kra filed the protest with the Attorney General's office.
KRA highlighted in a statement that between July 2022 and March 2023, the firms, through the Registrar of Companies, published ninety-day notices in the Kenya Gazette to inform the public of their intended voluntary dissolution.
The public was urged to submit any arguments against dissolving the companies in the notices
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Further, KRA expressed its concerns and provided evidence to the Registrar as to why the firms should not be dissolved while unpaid tax bills were outstanding.
Within seven days of submitting applications to the Registrar of Companies, corporations are required by the Companies Act 2015 to deliver copies of their application for voluntary dissolution to each of their creditors, including the KRA.
“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,” the statement read.
KRA says it has given enough reasons to the Registrar of Companies to temporarily stop the dissolution of the companies, pending the unsettled tax dues.
