Three people, among them a police officer, were Thursday charged with tax evasion after supplying goods and services to the National Youth Service (NYS).
Ms Caroline Atieno Mango, a police corporal, Ms Catherine Wanjiku Mwai and Ms Phylis Njeri Ngirita, members of the Ngirita family, were separately charged and denied multiple counts relating to tax evasion amounting to more than Sh40 million.
Their firms allegedly supplied various items to the scandal-ridden NYS between 2014 and 2018, as seen in payment vouchers obtained by the Kenya Revenue Authority (KRA) from the Ministry of Devolution and Planning.
VALUE ADDED TAX
Ms Mango denied 20 counts, which led to the alleged loss of Sh10.5 million to the taxman. The first count stated that between January 20, 2014, and January 20, 2015, with others not before the court and without reasonable cause, she omitted from the tax returns sales for the accounting year 2014, thereby affecting payment of Value Added Tax (VAT) amounting to Sh4,470,300.
The second count stated that during the same period, she deliberately failed to pay VAT amounting to Sh715,248 for the 2014 accounting period payable to the Commissioner of Domestic Taxes.
And in the 2015/2016 financial year, she is alleged to have omitted from returns tax amounting to Sh11,344,442 as required under the Income Tax Act.
Chief Magistrate Martha Mutuku ordered her to post Sh3 million cash bail or an alternative Sh5 million bond.
Meanwhile, Ms Mwai denied eight counts which allegedly lost KRA Sh10 million.
It is alleged that on or about June 30, 2017, trading as Kunjiwa Enterprises, with others not before court, she failed to submit income tax returns for 2016. That year, she allegedly failed to pay Sh264,123 corporation tax and another Sh6,456,038, for 2017.
The court directed her to post Sh500,000 cash bail. The case will be heard on December 20.
Ms Phyllis Njeri denied four counts totalling more than Sh20 million.
The court heard that trading as Njewanga Enterprises, she failed to submit to KRA returns for 2016 on time. She allegedly failed to pay taxes amounting to Sh6.9 million, and another Sh13,794,931 while for 2017.
She pleaded with the court to grant her lenient bond terms, saying her child had been thrown out of school for lack of fees.
The court directed her to present the documents from school in the afternoon, which she did, and was ordered to post Sh1 million cash bail to secure her release. Her case will be mentioned on November 7.
The two Ngiritas are facing multiple fraud charges over the NYS scandal together with their mother Lucy Wambui and brother Jeremiah Gichini and another sister Anne Wambere. The trial is ongoing.