The accused, jointly with others yet to be arraigned in court are said to have committed the crimes on diverse dates between September and October.
KRA says that Qwali Group Limited and Lensky trading company limited fraudulently inflated purchase figures from suppliers Ahmed Isaak Hardware Ltd, Karsan Ramji & Sons Ltd and Associated Steel Ltd in order to reduce tax liability.
The taxman further alleges that the two companies fraudulently edited the amounts in the initial cash sales receipts from the alleged suppliers to reflect high purchase amounts valued at Sh162million for purposes of reducing tax liability.
KRA told the court that preliminary investigations had revealed that the alleged suppliers denied transacting any business with the two companies and revealed that the dealings were fictitious and meant to evade payment of taxes.
They both denied the charges before chief magistrate Edna Nyaloti.
The magistrate further released Omar on a Sh5 million bond while Chengu was granted bond of Sh2 million, both need sureties of similar amounts.
Nyaloti directed the matter be mentioned on December 10.