Company CEO Released on Ksh3M Bond For Ksh900 million Tax Evasion

The managing director of Royal Mabati Factory Limited Moses Ikinya Kang’arua was today charged with tax evasion counts amounting to Ksh900 million.

Ikinya appeared before Milimani Court Chief Magistrate, Francis Andayi.

He faced 12 counts of charges ranging from fraud in relation to tax, altering statements in income tax returns, omitting to declare income taxes and Value Added Taxes, under-declaring imports as well as substituting and removing goods in a bonded warehouse.

In counts one to seven, Ikinya was charged with fraud in relation to tax contrary to Section 97 (A) as read with section 103 (3) of the Tax Procedure Act, 2015.

Under these counts, he allegedly made incorrect statements in income tax returns to reduce corporate tax liability by a total of Ksh447 million between 2016 and 2018 and VAT by a total of Ksh299 million over the same period.

From counts eight to 11, Ikinya faces charges of fraudulent evasion of payment of duty contrary to section 203 (e) of the East Africa Community Customs Management Act, 2004.

Under these counts, the court heard that the accused under-declared the weights of imports resulting in a variance in weight and leading to the evasion in payment of duty amounting to a total of Ksh120.5 million between 2018 and 2019.

The Royal Mabati Director was also charged with a count of failure to account for goods deposited at a bonded warehouse contrary to section 67 (3) of East Africa Community Customs Management Act, 2004.

Under this, the director allegedly substituted and removed goods with a dutiable value of Ksh62 million, leading to a tax loss of Ksh25.7 million.

Ikinya denied all the charges and was released on a bond of Ksh3 million or alternative bail of Ksh 1 million. The case will be heard on 29th October 2019