Taxman goes after businessman in Sh165 million tax evasion case

A businessman was yesterday charged with tax evasion amounting to Sh165 million in an Eldoret court.

Muktar Sheikh, who appeared before Eldoret Chief Magistrate Charles Obulutsa, denied all the 24 tax evasion charges he is facing.

Mr Sheikh is said to have deliberately omitted declaring his income returns and stating incorrect figures in his Value Added Tax (VAT) statements totalling Sh164,685,032 million between 2011 and 2014.

Through his company Bashash Limited, Sheikh is said to have first failed to pay taxes amounting to Sh1,776,034 in 2011.

In 2012, Sheikh again allegedly avoided paying the taxman Sh10,026,479. In 2013, the businessman avoided tax liabilities amounting to Sh97,925,303.

Sheikh in 2014 did not pay the Kenya Revenue Authority (KRA) its dues totalling Sh54,957,216.

Sheikh’s Bashash Limited has a foothold in three counties — Uasin Gishu, Mombasa and Mandera.

The prosecution, led by Cynthia Opiyo, asked the court to consider the amount of money that KRA has lost when granting Sheikh bail.

“We have no objection to the accused being granted bail. But we want the taxes lost to be taken into consideration,” said Ms Opiyo.

Sheikh’s lawyer Elijah Ayieko, however, countered the prosecution’s demand, saying that the accused must be presumed innocent until proven guilty.

Mr Ayieko said, as such, Sheikh had a right to favourable bail terms. He further criticised the prosecution for heaping all the 24 charges on his client, saying that some were repeated.

“Your honour it is an assault to justice drafting over 20 charges against one individual. Some charges are repeated,” said Ayieko.

He pleaded with the court that his client was not a flight risk, and would attend court without fail.

Opiyo defended the 24 counts, saying that although they seemed many they were spread over a period of three years.

Giving his ruling, Mr Obulutsa said he had considered the request for a bond made by the accused, which he noted the prosecution did not object to.

Sheikh was released on a bond of Sh2 million and an alternative cash bail of Sh200,000.

The case will be mentioned on August 20.