Former head of accounting at Nairobi County Stephen Osiro was ordered to pay Kes 70.7 million after the Kenya Revenue Authoritysnooped on his M-PESA statements.
The taxman discovered the county accountant, who worked under Dr Evans Kidero government, had unexplained mobile money transactions into his account at NIC Bank.
When confronted he claimed the money was ‘re-banking’ or withdrawal from one account and depositing into another account, causing KRA to double count his money.
KRA told the tax appeals tribunal that there was no documentary evidence that the money was being moved from one account to the other and Mr Osiro failed to disclose the source of his fat M-PESA wallet.
“Mr Osiro has not produced a shred of evidence to demonstrate to us the amount of funds that had purportedly been banked into NIC bank account following withdrawal from M-PESA,” the tribunal said.
“We, therefore, have no basis to upset the assessment in this regard when the very taxpayer affected has not vailed evidence to support his assertions,” the tribunal added.
Mr Osiro’s tax claim also came from investigations into money in his bank account and rental income for houses earned from monthly salary of about Sh90,000 but amassed record Sh340 million in wealth in five years.
Mr Osiro has been under investigations by the Ethics and Anti-Corruption Commission who have been probing his NIC bank account.
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