•The two were to be charged with eight counts of knowingly and unlawfully omitting taxes due in the income tax returns submitted to the Commissioner for Domestic Taxes for the period between 2014-2016.
•A warrant of arrest was issued against the directors.
Image: COURTESY
Two directors of Purma Holdings limited failed to appear in court on Monday to answer charges of unpaid taxes amounting to Sh2.2 billion.
The two, Mary Wambui Mungai and Purity Njoki Mungai also failed to honour summonses on the same by the Kenya Revenue Authority.
The two were to be charged with eight counts of knowingly and unlawfully omitting taxes due in the income tax returns submitted to the Commissioner for Domestic Taxes for the period between 2014-2016.
A warrant of arrest was issued against the directors.
Anti-corruption court magistrate Felix Kombo said the prosecution had presented copies of documents to show the accused were served with summonses.
This was in reaction to claims by the defence team their clients were not served with summonses.
The defence claimed Wambui had been admitted at the Nairobi Hospital since November 29, and was unable to attend court.
They asked for 10 days to present Njoki as she had not been served with the summonses.
An anticipatory bail they applied for before the High Court in Nairobi on December 3 failed as no direction was given.
The prosecution opposed the application and argued no medical records were presented to confirm the claims.
“It is clear the directors were served and the accused persons were properly served and neglected to appear,” said the magistrate.
He added there was no indication of medical incapacity of the alleged illness and incapacitation.
He said the court had examined the charges and noted the gravity and the public interest nature.
“It would appear to the court that the accused are buying time and have refused to confront the complaint levelled against them. The accused to be arrested and presented before court.”
The magistrate ordered the Officer Commanding Capitol Hill police station to arrest the accused.
The case will be mentioned on December 14 or as soon as they are arrested.
The taxman is pursuing Mungai over alleged unpaid taxes for the billions of shillings earned from government tenders for supplying boots, uniform and cereals to the military, among other State departments.
The taxman says Mungai and her two daughters earned billions of shillings between 2014 and 2019 through their company Purma Holdings Ltd.
The KRA says it has been conducting investigations on tax obligations by the company for the past two years.
They are to be charged with at least seven charges.
In the first charge, they are accused of omitting from returns an amount which should have been included contrary to section 97(a) as read with section 104(3) of the Tax Procedures Act No. 29 of 2015.
They are also to be charged with failure to submit a tax return by the due date contrary to section 94(1) as read with section 104(1) of the Tax Procedures Act No. 29 of 2015 and failure to pay tax by the due date contrary.
If found guilty for the offence of omission, the penalty is a fine not exceeding Sh10 million or double the tax evaded whichever is higher or imprisonment for a term not exceeding 10 years or both.
For the offences of submit a tax return and failure to pay tax, the penalty is a fine not exceeding Sh1 million and to imprisonment for a term not exceeding three years.
Edited by CM