This archive report was first published on 1 July 2021.
On June 1st, 2021, Chief Magistrate Francis Andayi of a Nairobi court heard a case involving Parmar Vinubhai Somabhai and Sangitabhen Vinubhai Parmar, directors of Harsidhi Enterprices Limited, who were accused of tax evasion amounting to Sh 400 million.
The charge sheet alleged that Somabhai and Parmar deliberately defaulted in the payment of income tax and Value Added Tax, but their lawyers argued that the charge sheet was premature and that the accused could be asked to pay the tax due instead of facing criminal charges.
The court was informed that despite the investigation commencing in 2017, a decision had not been arrived at by the commissioner of income tax to charge the two accused persons.
According to the lawyers, the accused had already raised an objection to the alleged tax evasion, but the commissioner of tax had yet to reply, making it difficult to establish the exact amount owed.
The court directed the defense to file a formal application and serve it on the prosecution, allowing all parties to address the issues.
The suspects were released on a cash bail of Sh 300,000 pending hearing and determination of the application.
