BY SAM ALFAN.
Kenya Revenue Authority has supported an application by Director of Public Prosecution and Inspector General of Police, seeking the freezing of bank accounts belonging to African Spirits ltd (ASL).
In an affidavit filed in court, KRA said that following the investigations, compliance checks and tax audits, it has been established that ASL and Wow Beverages Limited owe the taxman colossal amounts of money in taxes. The taxman said the money should be preserved to ensure that they will be in a position to recover the taxes owed.
It is the argument of KRA that if funds in the two companies’ accounts, which were subject of the order issued on August 2019 are lifted, KRA’s duty to collect taxes shall be greatly hampered and investigation being carried out, will be in vain.
“It is in the interest of justice that the funds be preserved to preserve the substratum of the matter pending the outcome of the investigations,” the prosecution argued.
A Kiambu magistrate had issued orders freezing the companies’ banks accounts, but the order was later lifted forcing the Director of Public Prosecutions back to court seeking a preservation order.
On Wednesday, Judge Luka Kimaru directed parties to file their documents and appear before him on Monday September 23, for further directions.
DPP Noordin Haji through senior prosecutor Catherine Mwaniki pleaded with the court to retain the status quo, a request that was declined.
The court heard that from investigations undertaken, it is clear that ASL breached the provisions of the Excise duty Act of 2015, the East Africa community customs management Act, 2004 the Value Added Tax Act and the Tax Procedure Act.
The agency said it has for many years been experiencing challenges in effectively assessing, collecting and accounting for all tax revenues due to various acts, omissions and vices perpetrated by some taxpayers which results in incorrect or lower tax declaration with resultant loss of substantial government Revenue.
The agency added that ethanol, natural Spirits and alcoholic beverages falls under Excise Duty Act that gives a raft of measures to ensure proper control and accounting of excisable goods.
