Gaming firm BetLion has started deducting 20 percent tax from customer winnings in compliance with a directive by the industry regulator and the Kenya Revenue Authority.
The firm, registered as MauUgan Enterprises Limited, told customers that it had started deducting the percentage from their winnings as per the Income Tax Act.
The move by BetLion comes even as a court in April temporarily stopped gambling and lottery firms from deducting 20 percent tax on winnings pending the hearing of a civil case filed by a betting enthusiast.
“Given the ongoing uncertainty with regards to the Income tax act under section 35 (1) (i) and 3 (h) we have taken the advice of BCLB and the KRA and have decided the most appropriate course of action is to apply it as per the KRA’s view of the law,” BetLion said.
The company, which launched its operations in Kenya last year, added that it started the deductions because it is not part of the court order that suspended the operation of sections 2, 10, 34 and 35, which provide for deduction of withholding tax from winning on betting.
KRA had asked the court to stop the order, arguing it will freeze collections of about Sh2.7 billion from winners.
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