A Kisumu court has fined a woman Sh81.4 million or serve seven years in prison after finding her guilty of tax evasion.
Antonina Muyoka Sangura, a businesswoman doing business with Vihiga County government, was convicted on 12 counts bordering on failure to file returns and failure to remit taxes to the Kenya Revenue Authority (KTA) amounting to Sh84,989,824.
Ms Sangura was the secretary of Ollkey Consultants Limited, the company accused of failing to file returns.
The company had won a tender from the Vihiga County government but failed to pay taxes.
In a report dated April 27, 2018, the firm owed KRA Sh72, 092, 847 which included income tax on rental income as investigations further revealed that the firm owned rental houses.
The taxes had increased to Sh84, 989, 824 due to the two per cent interest. At the time of indictment, the unpaid taxes amounted to Sh70,354,271 while the VAT was Sh12,807,966.
She was charged as the third defendant while Margret Nduku, Wycliffe Muendo Kilaka and Ollkey Consultants Limited were listed as the first, second and fourth defendants respectively.
However, Mr Muendo and Ms Nduku were neither arrested nor appeared in court for trial, despite being directors of the company. Ms Sangura, however, was arrested and arraigned on March 28, 2019.
The parties then attempted to negotiate out of court but failed to reach an agreement and the matter proceeded to trial.
Sangura faced six counts where she was accused of contravening section 94 (1) of the Fiscal Procedures Act, 2015.
The counts included failing to file income tax returns with the Commissioner of Domestic Taxes and failing to file tax returns for the years 2014 to 2018 by the due date of June 30 each year without reasonable excuse.
In her verdict on Monday, Senior Principal Magistrate Fatuma Rashid said she was satisfied that the prosecution had proved all the charges against the suspect.
For failing to file tax return, the court fined Sangura Sh200,000 or two years imprisonment for the years she failed to comply.
In the other six counts, she was found guilty of willfully failing to comply with the obligation to remit income tax by the due date contrary to Section 97 (e) of the Tax Procedure Act 2015.
“Guided by Section 104 (3) which provides for a fine not exceeding Sh10 million or double the amount of tax evaded, whichever is higher, or imprisonment for a term not exceeding 10 years, or both, the accused will pay double the amount of tax defaulted or seven years imprisonment,” Ms Rashid said.
This applied to the years in which she failed to pay tax. The number varied between the years 2014 and 2018.
“In total, the defendant will pay Sh81,402,336 in fines or serve seven years in prison. The sentences will run concurrently,” said Ms Rashid.
In her mitigation, Sangura pleaded with the court to be lenient on her, saying she was not a flight risk and that she had children who depended on her. She also indicated that she would appeal against the sentence.
“I pray that I appeal while I am out and pray for bail. I am not a flight risk,” Sangura pleaded.
The court ruled that she would make a formal application for bail pending appeal.
