The findings show significant discrepancies in the revenue reporting of British American Tobacco's Kenyan subsidiary, according to an article on the university's website . The discrepancies were discovered through analysis of six annual reports that were compared with, among other things, production data the company submitted to the Kenya Revenue Authority.
According to the analysis, there is a clear discrepancy between the amount of cigarettes the company produced and how many it reported were sold.
The discrepancies are up to USD 93 million in BATK's revenues for 2017 and 2018. These indicate that there may be an imbalance of up to USD 28 million, equivalent to over a quarter of a billion kronor.
The Kenya Revenue Authority states that the allegations will be reviewed to ensure that tax regulations are complied with and that all cases of tax evasion are addressed.
The investigation was a collaboration between investigative journalists at the Investigative Desk, researchers from the Tobacco Control Research Group at the University of Bath and officials from the Tax Justice Network Africa.
