Keroche tax evasion case pushed to September to allow negotiations

Hearing of the Sh14.5 billion tax evasion case facing Keroche owners Joseph Karanja and spouseTabitha Karanja has been adjourned to September to allow an out-of-court settlement.

Milimani Magistrate Geoffrey Onsarigo suspended the case after the KRA representative informed the court that the State agency is under instructions to drop the multi-billion shilling case against the Nakuru Senator and her husband as there are ongoing negotiations between the parties.

However, the taxman urged the court to be granted more time to finalise the out-of-court settlement in the case.

The DPP through State Counsel Duncan Ondimu confirmed that he was aware of the ongoing out-of-court negotiations between KRA and the accused persons and urged the parties to conclude the settlement soon.

“ I am aware of the negotiation but would request the parties to settle the dispute soon since there was a previous attempt by the parties to settle the matter out of court but flopped,” Ondimu stated.

At the same time, the case did not proceed to hearing after advocate for the defendants was said to be unwell.

The magistrate however adjourned the case to September 18, to allow the out-of-court settlement. In the case, the Senator faces 10 charges of tax evasion.

The prosecution alleges that Tabitha, her husband, and their company unlawfully made incorrect statements in their excise duty returns by reducing their duty by Sh1.8 billion on dates between February 20, 2015, and January 20, 2016.

Unlawfully made

She also made incorrect statements for the January to December 2017 returns, which affected payable excise duty by Sh3.6 billion.

The prosecution stated that between February 20 and July 20, the accused unlawfully omitted from their VAT returns for January to June affecting their VAT liability by Sh196 million.

Tabitha was also accused of under-declaring production volumes by 820,601 liters and misapplication of excise duty rates on Vienna Ice by using Sh 27.06 instead of Sh175, thereby reducing her excise duty liability by Sh1, 855, 403, 900 payable to the commissioner as required by the Excise Duty Act.

The charge sheet claims that the accused and the company on dates between February 20, 2015, and January 20, 2016, unlawfully made incorrect statements in their Excise Duty returns by reducing their duty by Sh1.8 billion.

She allegedly also made incorrect statements for the January to December 2017 returns, which affected payable excise duty by Sh3.6 billion. According to the prosecution, between February 20 and July 20, the accused unlawfully omitted from their VAT returns for January to June affecting their VAT liability by Sh196 million.