- Prosecution requested to amend the charges, saying some particulars were missing in the 2019 charge sheet.
- The defence indicated to court that that they seek to settle the matter out of court.
Image: FILE
Keroche CEO Tabitha Karanja has been charged afresh over Sh14.5 billion tax returns.
The Nakuru senator appeared before Milimani senior principal magistrate Esther Kimilu and denied 10 counts of tax evasion.
This is after the prosecution requested to amend the charges, saying some particulars were missing in the 2019 charge sheet.
According to the charge sheet, the accused and the company on dates between February 20, 2015, and January 20, 2016, unlawfully made incorrect statements in their excise duty returns by reducing their duty by Sh1.8 billion.
She also made incorrect statements for the January to December 2017 returns, which affected payable excise duty by Sh3.6 billion.
According to the prosecution, between February 20 and July 20 the accused unlawfully omitted from their VAT returns for January to June affecting their VAT liability by Sh196 million.
Tabitha was also accused of under declaring production volumes by 820,601 litres and misapplication of excise duty rates on Vienna Ice by using Sh27.06 instead of Sh175, thereby reducing her excise duty liability by Sh1, 855, 403, 900 payable to the commissioner as required by the Excise Duty Act.
The defence however indicated to court that that they seek to settle the matter out of court.
"We have already initiated the process of settling the matter with KRA and if court allows, we wish to have the matter settled," the court was told.
A KRA representative who was present in court said the office has no intentions to have the matter settled out of court since they have not received any information.
In line with Section 109 of the Tax Procedures Act, the application should be addressed to the commissioner in writing, the court was told.
The magistrate, however, further gave Tabitha 45 days to initiate the ADR process failure to which the matter will proceed to full trial.
“It's evident that defence was not ready. I give them 45 days to initiate the ADR process failure to which no further delay or adjournment will be granted. Court has always been ready,” the magistrate said.
The case will be heard on July 26.
In the case, Tabitha's husband Joseph Karanja has since been removed from the charges after the DPP withdrew charges against him due to his health condition.
Prior to their arrest, Karen Hospital asked the Directorate of Criminal Investigations to release Karanja citing a serious medical condition they said would worsen if the tycoon spent the night in police custody.
The senator and her husband were arrested after the DPP ordered their arrest and arraignment to answer to charges of tax fraud committed between January 2015 and June 2019.