Companies are yet to learn their lesson in tax evasion even after the scandalous Africa Spirits limited Company saga followed a raid in their company by the KRA and the DCI who are now probing the top boss.
An estimated 21 million counterfeit excise stamps and 312,000 litres of illicit products valued at Sh 1.2 billion in estimated tax were seized during the operations which commenced on January 31.
Now in almost similar fate from the Thika based entity is Platinum Distillers Limited, an alcoholic drinks manufacturer based in Ruiru, which was closed down on Sunday over an alleged plot to evade payment of up to Sh 14 million in taxes.
The factory was shut during a sting operation by officers from the Kenya Revenue Authority (KRA). Four people were arrested.
Dr Edward Karanja, the KRA’s head of tax investigations, explained that Platinum concealed its imported goods as raw materials for making alcohol in order to pay less in taxes.
He said that whereas the distiller paid Sh 383,962, a preliminary report indicated the consignment was packaged at an ethanol producing company in India, so the company should have paid up to Sh 14 million in taxes.