Directors charged with KShs. 92 million tax evasion

Two company directors alongside their company have been charged with 26 counts of tax evasion amounting to KShs. 92, 678,118 at the Milimani law court.

Caroline Njoki Kuria and Gasper Rogasiani Asenga, both directors of CRYSTAL WORLD AGENCIES LIMITED faced 13 counts of omitting from tax returns production amounts which ought to have been included contrary to section 97(a) as read with section 104(3) and 13 other counts of failure to pay taxes by the due date contrary to section 95 as read with section 104(3 of the Tax Procedures Act, 2015.

Tax investigations on CRYSTAL WORLD AGENCIES LIMITED, a licenced alcohol manufacturer, revealed that the Company had under-declared productions volumes thereby resulting in evasion of payment of proper taxes with regard to Income tax, Excise Duty and VAT. Taxes due amounts to KShs 92,678,118 comprising VAT of KShs. 17,380,600, Income tax of KShs. 44,552,970 and excise duty of KShs. 30,744,548.

The directors failed to account for all the excise stamps issued to it by KRA for the period January 2015 to April 2020, filed nil returns for the years 2014, 2017, and 2018 yet the company conducted business of manufacture of excisable goods and mis-declared income.

The two pleaded not guilty to the offences and were granted Bond of KShs 5 million or alternative cash bail of KShs 5 million. The case will be mentioned for pre-trial on 31st March, 2022.

In the same court, George Nganga Thairu, a director of KEDSTAR INVESTMENTS LIMITED was charged with the offence of manufacturing excisable goods without maintaining metering and measuring devices and such other equipment. He pleaded not guilty before Hon. Wendy Micheni Chief Magistrate and was granted a cash bail of Kshs 100,000. The case shall be mentioned on 8th April 2022 before the same Court

The accused was arrested during a raid conducted on 3rd February 2021 at KEDSTA INVESTMENT LIMITED, the company was found manufacturing excisable goods but was not maintaining metering and measuring devices as required under the Excise Duty Act. If convicted, the Accused shall be liable to a fine not exceeding Kes.5 Million or to imprisonment for a term not exceeding 3 years as provided for by the Excise Duty Act, No. 23 of 2015.

Taxpayers are encouraged to pay their fair share of taxes as KRA remains relentless and vigilant in stepping up the fight against smuggling of goods at all points of entry.

MG Team

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