Inside Coca-Cola Sh5.6bn tax call battle with KRA Moses Michira
Publication details: Nairobi Nation Media Group 2012Description: p.8 Business Daily (November 5, 2012)Subject(s): Online resources: Summary: Former Finance minister David Mwiraria had in 2004 changed the laws and subjected the cost incurred in cleaning up returnable bottles together with soda production expenses to excise tax, which is based on the total cost of production. But four local Coca-Cola franchises moved to court in May last year and argued that the bottles belong to them and the cost of washing and sanitising returned containers cannot be subjected to tax since they are never sold to distributors. In June, the market regulator fined Centum for failing to issue a profit warning after its earnings slumped 40 per cent for the year ended March. Firms are required to issue a warning if earnings are likely to fall by more than a quarter in a full financial year.
Former Finance minister David Mwiraria had in 2004 changed the laws and subjected the cost incurred in cleaning up returnable bottles together with soda production expenses to excise tax, which is based on the total cost of production.
But four local Coca-Cola franchises moved to court in May last year and argued that the bottles belong to them and the cost of washing and sanitising returned containers cannot be subjected to tax since they are never sold to distributors.
In June, the market regulator fined Centum for failing to issue a profit warning after its earnings slumped 40 per cent for the year ended March.
Firms are required to issue a warning if earnings are likely to fall by more than a quarter in a full financial year.
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