The court ordered a Mombasa-based Pakistani car dealer to pay 1,8 billion shillings to the Kenya Revenue Authority (KRA) after finding three of his associates guilty of tax evasion.
Together with three employees who were directors of companies linked to him, the car dealer faced charges of tax evasion. They have been dealing in the car business since 2013.
KRA had assessed the tax due and the Tax Appeals Tribunal approved the amount of 1.8 billion. A resident magistrate in Mombasa ordered the four suspects to pay the entire amount.
During the ruling, the resident magistrate noted that KRA proved that the accused persons owed it 1.8 billion beyond a reasonable doubt.
“The companies and its directors cannot have it both ways. The Tax Appeals Tribunal already made its judgement. In the absence of any appeal or stay of that judgement the companies have no option but to comply,” the magistrate said.
“Further, there are no doubts about the amount of tax due. Therefore, the Ex parte Applicants cannot have it both ways,” he added.
The suspects were facing criminal charges in 2020. However, the magistrate put the proceedings on hold pending the determination of the case on tax evasion.
This latest ruling lifts the order that stopped the suspects’ prosecution. The suspects will be arraigned in court once more as they face criminal charges.
“The Ex parte Applicants together with their directors, shareholders and employees will face prosecution,” the court declared.
The Pakistani car dealer has been out on a Ksh10 million bond and sureties of a similar amount.