Two directors Mahesh and Tirth Construction Company ltd who are accused of evading tax worth over Sh30 million have a case to answer, a Nairobi court has ruled.
Milimani Senior Magistrate Bernard Ndungi ruled that Mahesh Kumar Batukraijani and Valani Keshra Karsani and their company- Mahesh and Tirth Construction Company limited have a case to answer in tax fraud charges.
“I have considered evidence produced by prosecution and submissions by the defense and I find that the accused persons have a case to answer,” the magistrate ruled.
Asked how they will defend themselves, the dup said they will file sworn statements and call up three witnesses in their defence.
During the hearing, investigating officer in a case in which directors of Mahesh and Tirth Constitution Company ltd are charged with over Sh30 million tax fraud has told the court that the company had claimed tax from two fictitious companies.
Chief Inspector George Otieno, the investigating officer from Kenya Revenue Authority (KRA) said that the two companies were flagged as fictitious because they were registered only on paper.
He said the Registrar of Companies said Darwine wholesalers and Fahari wholesalers were not trading nor did they have physical addresses for trading.
Otieno further told the court that it was a scheme to assist genuine traders by issuing fictitious invoices to help them reduce taxes payable to KRA.
Mahesh Kumar Batukraijani and Valani Keshra Karsani and their company- Mahesh and Tirth construction company limited are accused of tax evasion.
It is alleged that on diverse dates between February 20, 2016 and September 20, 2017 jointly being directors of the company, they unlawfully made incorrect statements in the value added tax return for the period, thereby reducing the company’s VAT liability by Sh17,483,602.
The prosecution told the court the two directors also jointly made incorrect statements in the value added tax return for the period March 6, 2016 to January 1, 2017 thereby reducing the tax liability by Sh7,055,595.
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