Two firm directors were charged in Nakuru Law Courts with ten counts of tax evasion.
Harrison Waweru Nganga and Caroline Nyambura Munyambu, both directors of Matigari Ndunyu Njeru Company Limited, jointly appeared before Senior Principal Magistrate Ruth Kefa, where they both denied having fraudulently evaded payment of taxes amounting to Kshs. 8,693,753. They were each granted a bond of Kshs.4 million.
The two are charged with three counts of fraud in relation to tax where they omitted part the company’s income of Kshs.39,253,452 in the Company’s tax returns for the year 2020 occasioning a tax loss of Kshs.3,711,577.
They also faced three counts of failure to pay taxes by due dates of Kshs.388,717 of income tax for the year 2023 and Value Added Taxes (VAT) of Kshs.4,368,141 and Kshs.225,318 for the period 2021 and 2023 respectively.
Both directors further faced four counts of failure to submit tax returns for both income tax and VAT obligations by due dates between 2021 and 2023, an obligation placed upon them as registered taxpayers.
If convicted, the accused will be liable to a fine not exceeding Kshs.10 million or double the tax evaded, whichever is higher, or imprisonment for a term not exceeding 5 years as per the provisions of the Tax Procedures Act.
KRA’s Investigations & Enforcement Department continues to unearth schemes orchestrated by unscrupulous business persons to ensure that all tax laws and procedures are strictly adhered to to promote fair competition/ trade within the market.
Taxpayers are therefore encouraged to pay their taxes and remain compliant with tax laws in order to avoid punitive enforcements measures including prosecution, issuance of Agency Notices to the banks, Preservation Orders against liquid assets, registration of caveats and cautions against properties, travel prohibition, seizure and detention of goods and motor vehicles amongst others.
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