Defense team in the Nakuru Senator Tabitha Karanja’s Sh 14.5 billion Tax Evasion case has told court that Tabitha is in discussion with KRA and they have undertaken to settle the matter out of court.
Tabitha was charged in her capacity as the former CEO for Keroche distillers company where the prosecution alleged that on diverse 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.
She later moved the court seeking a lee way to have a negotiation with the KRA to pursue out of Court settlement.
However, the taxman sued Keroche Breweries for contempt of court in late 2022.
This is after Keroche defaulted on a new payment plan ordered by the same court which required the brewer to make monthly payments on tax arrears and honor current taxes.
According to the application by KRA, Keroche did not honor payments amounting to Ksh.30.3 million including the payment of Ksh.16 million in two equal tranches in August 2023.
Keroche was further in default of Ksh.14.3 billion in current taxes.
“Keroche Breweries Limited has been adamant in disregarding the court order of July 14, 2022 notwithstanding that order was issued in the presence and with knowledge and understanding of the counsel of Keroche Breweries,” KRA said in its application to the court.
KRA said it had written severally to the management of the company reminding them to pay the tax liability across August without eliciting any compliance.
KRA wanted the court to find Keroche CEO Tabitha Karanja and Director Joseph Muigai Karanja to be in contempt of court and face judicial sentencing for the disobedience.
Case to be mentioned on 18th September 2024 for hearing.
