Sterling and Wilson Renewable Energy Limited has received assessment orders from the Kenya Revenue Authority (KRA) for the period January 1, 2020, to December 31, 2023. The assessment pertains to a shortfall of tax, including applicable interest and penalties, aggregating to approximately ₹50.41 Crore. The company intends to file appeals against these orders with the appropriate authorities.
Tax Assessment Details
The company, Sterling and Wilson Renewable Energy Limited, has been issued assessment orders by the Kenya Revenue Authority (KRA). The assessment period covers January 1, 2020, to December 31, 2023.
Financial Impact and Response
The assessment orders indicate a tax shortfall, including applicable interest and penalty, totaling approximately ₹50.41 Crore. Sterling and Wilson Renewable Energy Limited plans to file appeals against the orders with the relevant authorities within the stipulated timeframe. The KRA’s assessment challenges the company’s income-tax returns and attributes higher profits to the Kenya branch.
Key Issues Raised by KRA
The KRA has disregarded the company’s income-tax returns (including transfer pricing study) and deemed a higher attribution of profits to its Kenya Branch. This has consequently led to a consideration of transfer pricing adjustments and associated withholding tax obligations in Kenya. Additionally, VAT demand has been raised concerning ineligible credits, along with PAYE (pay as you earn) related to accommodation provided to employees.
Source: BSE
