KRA takes two firms to court over Sh800m unpaid taxes

NAIROBI: One of the biggest business premises in Eastleigh and a top-end hotel have been taken to court over failure to remit Sh800 million in income tax to the Kenya Revenue Authority (KRA).

KRA now wants the court to compel Kilimanjaro Lodge together with an associated firm, and Eastleigh Mall, to pay up, after the two knowingly failed to declare tax returns over four years.

The huge claim is the latest move by the agency to enhance revenue collection, coming against an all-time high target of Sh1.25 trillion to meet rising Government spending.

KRA has lodged a complaint to recover the money from the directors of the two firms in separate suits. The directors are accused of knowingly failing to declare returns for the last four years.

Kilimanjaro director Yasin Jama Ismail was charged on five counts for making incorrect tax statements for the years between 2008 and 2013. The taxman is pursuing Sh412 million. Ismail was found to have allegedly accumulated huge amounts of money in his bank accounts, which may not have been declared for tax purposes.

“Yassin Jama Ismail is trading under the name Kilimanjaro Food. He was found to have accumulated a substantial amount in his bank accounts, which may not have been declared for tax purposes. KRA moved to court and obtained orders preserving the funds to recover under-declared taxes totalling Sh412,234,047,” a statement by KRA read.

The business man was, however, not in court to take plea as he was out of the country for medical check-up. And eight directors of Eastleigh Mall were accused of evading to pay taxes for the years between 2008 and last year, all amounting to approximately 386 million.

The directors - Abdi Rage, Hassan Abdi, Mohammed Mahmud, Mohamed Shakul, Noor Ahmed Noor, Abdi Hassan, Osman Ali, Abdi Raage and Rehma Shuriye - were to appear before Makadara law court Senior Principal Resident Magistrate Heston Nyaga to take plea, but they moved to the High Court, which temporarily stayed the proceedings until September 16 this year.

High Court judge Nicholas Ombija stayed the case until September 16, when the parties will appear before him for further orders.

“Eastleigh Mall Ltd and its directors were found to have accumulated substantial amounts of money in their bank accounts, which may not have been declared for tax purposes. KRA moved to court and obtained orders preserving the funds in the accounts to recover Sh386,701,864,” KRA’s statement to media houses indicated. The case will be mentioned on September 24.