The director of London Distillers Kenya Limited, Mohan Galot, has been charged with 18 tax evasion offenses involving KSh2.1 billion, according to court documents from 2021. The allegations stem from under-declared excisable product volumes and unreported sales between 2015 and 2019, violating Kenya's VAT Act No. 35 of 2013.
Galot and his company appeared before Milimani Chief Magistrate Martha Mutuku, accused of omitting KSh3.5 billion in VAT sales and failing to declare 8.05 million litres of spirits in 2016-2019. These actions allegedly caused a KSh1.51 billion revenue loss in excise duties under the Excise Duty Act No. 23 of 2015.
Additional charges include unreported income tax liabilities of KSh189 million for 2016-2017, resulting in unpaid taxes of KSh56.8 million. Galot denied all allegations and was released on a KSh5 million bond, with alternative cash bail options of KSh1 million per defendant.
Conviction could lead to fines up to KSh10 million or double the evaded taxes plus interest. The case is scheduled for August 9, 2021, for pre-trial directions.
