Two directors charged over Sh1.5million VAT fraud claims
Two company directors have been charged with allegedly making false tax declarations involving fictitious business purchases that resulted in a combined loss of Sh1.537 million in Value Added Tax (VAT) revenue.
Jefferson Wachira Gachango and Dorothy Gacheri Kimathi appeared before Milimani Principal Magistrate P.K. Mutai to answer charges of allegedly making incorrect tax statements to reduce their VAT liabilities.
The prosecution alleges that Wachira, a director of Jefla Construction Company, declared purchases worth Sh3.329 million from Adsem General Supplies in July 2022, knowing the information was incorrect.
The declaration allegedly caused a VAT loss of Sh532,663 to the Commissioner of Domestic Taxes.
In a separate count, Wachira is accused of declaring purchases worth Sh3.427 million from Namtek Transporters, allegedly resulting in a further tax loss of Sh548,337.
Jefla Construction Company is registered under number CPR/2014/156197 and has Kenya Revenue Authority personal identification number P051503246Y.
Kimathi faces a separate charge over alleged incorrect declarations involving purchases worth Sh2.852 million from Aislve Enterprises.
According to the prosecution, the declaration was allegedly made knowingly to reduce her VAT liability, occasioning a loss of Sh456,428 to the tax commissioner.
The three counts account for the total alleged tax loss of Sh1,537,428.
Following the proceedings, Wachira was released on a bond of Sh600,000 or an alternative cash bail of Sh400,000. Kimathi was granted a bond of Sh300,000 or an alternative cash bail of Sh150,000.
Meanwhile, the court issued warrants of arrest against Jane Lucy Njeri, Joram Kamau and Amisi Zamda after they failed to appear.
The three are expected to face charges relating to tax fraud and aiding the commission of tax fraud. They are associated with Jefla Construction Company, Renova Limited, and Tekaza Investment and General Suppliers, respectively.
The court also directed Henry Ateka Nyabwari, identified as the sixth suspect, to appear on Friday for plea-taking.
The Director of Public Prosecutions has approved six charges relating to tax fraud and aiding the commission of tax fraud.
The case was prosecuted by Annette Wangia, Virginia Kariuki, Kevin Nyaga and Charlotte Elly.
The allegations are before the court and have yet to be proved.
