Two Directors of Alcohol Manufacturing Company Charged With Ksh92 Million Táx Evásion

Two company directors alongside their company have been charged with 26 counts of táx evásion amounting to Ksh92, 678,118 at the Milimani law courts.

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 amount to Ksh92,678,118 comprising of VAT of Ksh17,380,600, Income tax of Ksh44,552,970 and excise duty of Ksh30,744,548.

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 the business of manufacture of excisable goods and mis-declared income.

The two pleaded not guįlty to the offences and were granted Bond of Ksh5 million or alternative cash bail of Ksh5 million. The case will be mentioned for pre-trial on March 31, 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 guįlty before Chief Magistrate Wendy Micheni and was granted a cash bail of Ksh100,000. The case shall be mentioned on April 8, 2022, before the same Court

The accused was arrésted during a raįd conducted on February 3, 2021 at Kedstar Investments 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 Ksh5 Million or to imprįsonment for a term not exceeding three years as provided for by the Excise Duty Act, No. 23 of 2015.

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