BY SAM ALFAN.
Two directors of a company accused of evading paying tax amounting to Sh400 million have opposed charges brought against them arguing that the case is premature.
Parmar Vinubhai Somabhai and Sangitabhen Vinubhai Parmar, who are directors of Harsidhi Enterprises Limited appeared before Nairobi Chief Magistrate Francis Andayi but opposed the charges saying tax assessment by Kenya Revenue Authority (KRA) has not been completed.
The court heard that despite the fact that investigation commenced in 2017, a decision has not been arrived at by the commissioner of income tax to charge the duo.
Their lawyers told the court that the charge sheet being presented before the court was premature.
They said if there is tax due to KRA, they can be asked to pay the money and not to prefer criminal charges against them.
The court was further told that the accused has already raised an objection to the alleged tax evasion and commissioner of tax is yet to reply so that exact amount is established for the accused to remedy to the taxman.
In a ruling, Andayi directed the defense to file a formal application and serve the same on the prosecution so that the issues can be addressed by all parties.
The magistrate directed that in order to secure attendance of the accused they deposit a cash bail of Sh300,000 pending hearing and determination of the application opposing plea taking.
According to the charge sheet presented before court, Parmar, Sangitabhen and Harsidhi Enterprices Limited are accused that between January 1 and December 31 in the year 2015 at Nairobi County jointly being directors of Harsidhi Enterprices Limited, they deliberately defaulted in the payment of income tax of Sh267,415,453 million payable to commissioner of Domestic tax.
They are also accused of deliberately defaulting paying Sh60, 815,758 payable to the Commissioner of Domestic tax.
It is also alleged that between January 1 and 31 December 2015, they deliberately defaulted in the payment of value added tax Sh142,621,575 payable to commissioner of Domestic tax.
