•Firms argues move has left more than 500 jobless
•It wants Justice Luka KImaru to set aside the lower courts orders
African Spirits Limited has accused KRA of injustice in the closure of its business saying it left more than 500 people jobless.
Through lawyer Cecil Miller, the liquor firm asked the court to bar KRA and Directorate of Criminal Investigation from abusing the law which it said has led to collapse of its businesses and freezing of accounts.
“This grave miscarriage of justice must stop and this court should grant orders sought,” Miller said.
Miller contended that the DCI has no mandate to investigate or prosecute tax related matters as the powers are exclusively vested on KRA.
He wants Justice Luka Kimaru to set aside the freezing orders of the company's account in Thika and Kiambu court.
"KRA flouted the provisions of East African Customs Management Act when it purported to donate or call in DCI officers to investigate and prosecute African Spirits limited and its directors in the alleged tax evasion offences," Miller said.
Last month,the DCI linked companies associated with businessman Humphrey Kariuki in the Sh41 billion tax evasion case to money laundering.
DCI officer Shem Njeru said in the course of investigating the tax offences they realised there was movement of large sums of money in various companies, among them Axis Logistics Limited, a shareholder of African Spirits Limited.
"Our investigations also revealed that African Spirits, Wow Beverages and their associates may have possibly been involved in the commission of money laundering offences,” Njeru said.
He said due to the complex nature of money laundering and considering the intertwined companies, they obtained an order from Kiambu courts on August 19 that funds held in KCB and National Bank be frozen for 90 days.