London Distillers boss Mohan Galot charged with Sh2.1bn tax evasion

The matter is set for mention on August 9, 2021.

In Summary

•The court heard that the accused failed to declare VAT sales worth Sh 3.5 billion with a VAT tax implication of Sh563 million for the years 2015, 2016, 2017 and 2019.

•Failure to declare such sales in the VAT return is an offence contrary to the VAT Act No. 35 of 2013.

Director of London Distillers Kenya Limited Mohan Galot
Director of London Distillers Kenya Limited Mohan Galot
Image: COURTESY

Director of London Distillers Kenya Limited Mohan Galot has appeared  in court to answer charges of tax evasion totalling to Sh2.1 billion.

Galot appeared before Milimani Chief Magistrate Martha Mutuku.

He was charged alongside London Distillers Kenya Limited with 18 counts of tax evasion related offences.

This was after a series of investigations which revealed that the Company had grossly under declared production volumes of excisable products.

The court heard that the accused failed to declare VAT sales worth Sh3.5 billion with a VAT tax implication of Sh563 million for the years 2015, 2016, 2017 and 2019.

Failure to declare such sales in the VAT return is an offence contrary to the VAT Act No. 35 of 2013.

The accused are further charged with failure to declare production volumes of 168,157 litres of ready to drink beverage and 8,048,268 litres of spirit in 2016, 2017 and 2019 .

This, according to the court papers, led to a revenue loss of Sh1.5b in excise duty.

The accused are further facing additional counts of failure to declare Sh189m in the income tax returns for 2016 and 2017 as stipulated in the Income Tax Act Cap 470.

Consequently, the court heard that the accused failed to pay income taxes totalling to Sh56m for the two years.

The accused denied all the charges and were released on a Sh5 million bond and a surety of a similar amount.

The matter is set for mention on August 9.