The Kenya Revenue Authority (KRA) is considering settling the Sh14.5 billion tax evasion case facing Keroche owners Joseph and Tabitha Karanja Muigai out of court.
When the case was up for mention yesterday, the KRA representative informed trial Geoffrey Onsarigo that they authority have intentions to drop the multi-billion case against the Nakuru Senator and her husband since there are ongoing negotiations between the parties.
However, the authority urged the court to be granted more time to finalize the out-of-court settlement in the case.
The DPP through state counsel Duncan Ondimu confirmed that he was aware of the ongoing out-of-court negotiations between KRA and the accused persons and urged the parties to conclude the settlement soon.
” I am aware of the negotiation but would request the parties to settle the dispute soon since there was a previous attempt by the parties to settle the matter out of court but flopped,” Ondimu stated
At the same time, the case did not proceed to hearing after Tabitha and her husband’s advocate was said to be unwell.
The magistrate however adjourned the case to September 18, 2024, to allow the out-of-court settlement.
In the case, the Senator faces 10 charges of tax evasion
The prosecution alleges that Tabitha, her husband, and their company unlawfully made incorrect statements in their excise duty returns by reducing their duty by Sh1.8 billion on dates between February 20, 2015, and January 20, 2016,
She also made incorrect statements for the January to December 2017 returns, which affected payable excise duty by Sh3.6 billion.
According to the prosecution, between February 20 and July 20, the accused unlawfully omitted from their VAT returns for January to June affecting their VAT liability by Sh196 million.
Tabitha was also accused of under-declaring production volumes by 820,601 liters and misapplication of excise duty rates on Vienna Ice by using Sh 27.06 instead of Sh175, thereby reducing her excise duty liability by Sh1, 855, 403, 900 payable to the commissioner as required by the Excise Duty Act.
