News Tax

Royal Mabati Factory MD charged with 12 counts of Tax fraud

Royal Mabati Managing Director Moses Ikinya Kang’arua faces 12 counts of tax evasion. [ Photo / Business Today ]

Moses Ikinya Kang’arua, The Managing Director of Royal Mabati Factory Limited was arraigned in a Nairobi law court on Wednesday 25 September, 2019.

Appearing before Milimani Law Court, the director was charged with tax evasion amounting to Ksh. 900 million.

The accused faced 12 counts of charges.

In counts one to seven, the director was charged with fraud in relation to tax contrary to Section 97(A) as read with Section 103(3) of the Tax Procedure Act. Under these counts, he allegedly made incorrect statements in income tax returns whereby he reduced corporate tax liability and VAT between 2016 and 2018 by a total of Ksh. 447 million and Ksh. 299 million respectively .

In another count the accused was charged with fraudulent evasion of payment of duty contrary to Section 203(e) of the East Africa Community Customs Management Act. The court heard that the Managing Director under-declared the weight of imports resulting in a variance of weight and thereof leading to the evasion in payment of duty amounting to a total of Ksh. 120.5 million between 2018 and 2019.

Furthermore, the Royal Mabati director allegedly substituted and removed goods with a dutiable value of Ksh. 62 million thereof leading to a tax loss of Ksh. 25.7 million. For that offence he was charged with a count of failure to account for goods deposited at a bonded warehouse contrary to Section 67(3) of the East Africa Community Customs Management Act.

The accused denied all the charges. Francis Andayi released him on a bond of Ksh. 3 million or an alternative bail of Ksh. 1 million.

The case will be heard on 29 October, 2019.


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