Moses Ikinya, Royal Mabati Factory Managing Director and two other company employees-Caleb Opondo Ochieng, Company Finance Director and Margaret Nyambura Kamau, Warehouse Officer- have been charged before a court of law in relation to tax fraud and tax evasion.
In a move by the prosecution team to consolidate the long charge sheet that contained duplicate charges, Moses Ikinya Kang’arua is charged alongside with two other company employees of unlawfully making incorrect statements in income tax returns for the financial year 2016/2017.
According to court documents the commission of this act reduced his corporate tax liability by Ksh 20, 916,643 payable to the Kenya Revenue Authority.
The MD faces five other tax fraud counts where he is accused of withholding from the tax man Ksh. 172,791,540, Ksh. 253,460,464, Ksh. 227 million and Ksh. 151 million in the financial years of 2017 and 2018.
In a further count, the Royal Mabati MD and the two employees are accused of under declaring the weight of imports resulting in a weight variance of 3.879 tonnes thereby evading a tax of Ksh. 96,928,765 .
According to the KRA prosecutor, Peter Mwenda, the two employees face a charge of failing to account for goods deposited in a bonded warehouse. The two are said to have substituted and removed good in a subtle way such that they were able to sneak in steel coils with a durable value of Ksh. 25,711,191.
Consequently, the two employees are charged with aiding the Managing Director to evade tax amounting to Ksh 253,460,464 for the financial year 2018/2019.
The accused persons denied the charges. However trial Magistrate Bernard Ochoi maintained the previous bond terms where they would pay Ksh. 3 million bond or an alternative Ksh. 1 million cash bail.
However, Mr Ikinya requested as to whether he could substitute his Ksh. 1 million cash bail with a log book, a request which the prosecution did not oppose.
The case is scheduled for hearing on October 29,2019. The case will be mentioned on October 23, 2019 where a pre-trial is set to take place.
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