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November 15, 2018

Traders accused of failing to pay Sh3.2bn tax deny charges

The two were charged with failing to remit Sh3.2 million to KRA.
The two were charged with failing to remit Sh3.2 million to KRA.

Two traders have been charged with failing to remit to KRA revenue running over Sh3.2 billion in a span of two years.

Dhavai Soni, Bhupathiraju Varma and their company Shreeji Enterprises (K) Limited were charged at the Milimani law courts in Nairobi.

They denied eight counts of claiming VAT, falsifying books of account, affecting payment of VAT, making incorrect statements about VAT paid, failing to remit VAT and failing to pay tax.

Soni, a director of Soni, and Varma, the financial controller, have denied the eight counts filed against them by the KRA prosecutors.

Soni and the company - Shreeji are accused of claiming VAT which they were not entitled to amounting to Sh454.8 million from the Commissioner of Domestic Taxes.

Varma has been accused of aiding Shreeji Enterprises Kenya Limited in preparing false books of accounts thereby affecting payment of Sh1.4 billion between January 20, 2016 and December 20, 2017 to CDT.

Soni and Shreeji face another count of making an incorrect statement of VAT thereby affecting payment of revenue amounting to Sh454.8 million to CDT.

He is also accused of defaulting on tax obligations to remit VAT of Sh454.8 million by the due date.

Soni and Shreeji are further accused of failing to pay corporation tax amounting to Sh478.6 million to CDT between April 1, 2016 and March 2017.

The total amounts involved are Sh3.26 billion.

When the case came up for hearing before Milimani trial magistrate Martha Mutuku, defence lawyer David Oyatta applied to have the matter adjourned to enable him attend to a High Court matter.

The prosecution did not oppose the request. Mutuku allowed the defence request and adjourned the case to be heard in February 2019.

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