This archive report was first published on 27 September 2019.
On 25 September 2019, Moses Ikinya Kang'arua, the Managing Director of Royal Mabati Factory Limited, appeared before the Milimani Law Court in Nairobi, facing 12 counts of tax evasion.
The charges, which date back to 2016 and 2018, include fraud in relation to tax contrary to Section 97(A) as read with Section 103(3) of the Tax Procedure Act. The court heard that the director allegedly made incorrect statements in income tax returns, reducing corporate tax liability and VAT by a total of Ksh. 447 million and Ksh. 299 million respectively.
Additionally, 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 leading to the evasion in payment of duty amounting to a total of Ksh. 120.5 million between 2018 and 2019.
The case will be heard on 29 October 2019. The accused denied all the charges and was released on a bond of Ksh. 3 million or an alternative bail of Ksh. 1 million.
