High Court temporarily stops prosecution of Kentsta Metal Hardware Ltd Director


High court has temporarily stopped the prosecution of the Director of Kentsta Metal & Hardware Limited over tax default.

The Director, Bhupen Vichand Gala filed an application challenging the decision by Kenya Revenue Authority (KRA) to charge him for the offences pending the hearing and determination of the petition.

KRA has six counts of offences against the businessman who may be charged alongside his company.

According to the taxman, the businessman, jointly with others not before court knowingly made an incorrect statement in Value Added Tax (VAT) returns for the months of April, May, September, October, November and December 2015 thereby affecting payment of Sh 5,128,263 VAT to the commissioner of domestic taxes.

In another count, Gala is accused of deliberately defaulting to remit the VAT by due date.

Further, he is alleged to have deliberately failed to pay corporation tax amounting to Sh 9,615,49 on or 30th November 2015.

Kentsta and its Director are also accused of knowingly making an incorrect statement in VAT returns for the months of January to June 2016 thereby affecting parent of Sh 3,065,298 tax.

Gala is said to have deliberately defaulted in remitting the above amount as tax.

In the last count, the businessman and his company are accused of failing to pay Sh 5,747,434 corporation tax for the year 2016.

The criminal matter will be mentioned on 6th February 2019 before Senior Principal Magistrate Martha Mutuku for further directions.