London Distillers boss Mohan Galot charged with Sh2.5billion tax evasion

A city tycoon has been charged with evading taxes amounting to Sh2.5 billion.

Mohan Galot, a director of London distillers Limited, alongside his company denied 18 counts of tax evasions before Nairobi Chief Magistrate Martha Mutuku.

The court heard that being the director of London distillers Kenya limited, he unlawfully omitted from excise duty returns for the year 2016 production volumes totaling to 164, 593litres of the ready to drinks and 2,902661 of spirit.

The drinks ought to have been declared to the commissioner as required by the excise duty Act of 2015 laws of Kenya.

He allegedly committed the offence between January 1, 2016 and December 31, 2016 within the country.

He faced a second count of failing to pay excise duty amounting to Sh524, 425,063 for the year 2016 on the same dates.

He is also accused of failing to pay excise duty of Sh814, 531,858 for the year 2017.

The court heard that Galot also failed to pay excise duty amounting Sh171, 126, 307 for the year 2019 between January 1 and December 31, 2019.

According to the charge sheet, between January 2016 and December 2018, Galot activated 1,610,150 stamps in the EGMS system representing a production equivalent to 527,250 liters.

He denied the charges before Milimani chief magistrate Martha Mutuku and through his lawyer, pleaded for lenient bond terms.

Galot stated that the case has been before the tax tribunal and KRA had instructed him to launch an appeal on the same.

“In determining the bond terms kindly consider that the liability of the accused who has not crystallized until the determination of the appeal at the tax appeal Tribunal”, he pleaded with the court.

He urged the court not to consider the amount in the charge sheet and give him a lenient bail terms

“The matter has been investigated for a period of 2 years. We need all documents to be availed to us by the prosecution,” Galot said.

The prosecution however did not oppose his release on bail but urged court to consider nature of the case and the Severity of the punishment in case he is found guilty.

Mutuku released him on a cash bail of Sh1 million or a bond of Sh5 million.

The case will be mentioned on August 9.