Troubled billionaire Humphrey Kariuki is a relieved man after he along with his two firms were allowed to access their bank acconts.
During the court ruling, Kenya Revenue Authority (KRA) was faulted for failing to assess their books.
High Court Judge Wilfrida Okwany lifted a freeze on bank accounts operated by WOW Beverages and Wines of the World Ltd, where Mr Kariuki is a director, arguing that KRA is yet to assess their books.
The judge added that Section 43 (7) of the Tax Procedures Act gives KRA 30 days from account freezing to notify the individual under probe of an assessment, which the taxman has not done.
KRA had argued that the investigations into Mr Kariuki are being carried out by a multi-agency team.
The team, comprising officers from the Directorate of Criminal Investigations, National Police Service and KRA, has been investigating Mr Kariuki and his firms since February.
In the March 8 judgement, High Court Judge John Onyiego had extended orders freezing 11 accounts associated with businessman Humphrey Kariuki over alleged tax evasion amounting to Ksh.3 billion.
“This matter is purely a tax case, therefore the matter is referred to the commercial division for further directions,” Onyiego directed.
“This matter is purely a tax case, therefore the matter is referred to the commercial division for further directions,” Onyiego directed.
This is even as the businessman companies moved to court to challenge the orders freezing the accounts claiming that KRA lied to court and brought dishonest allegations to obtain orders freezing his companies.
There is a premeditated, well-coordinated and persistent scheme devised by KRA to malign my reputation and cause me business loss. They’ accounts,” says Kariuki in court papers.
“It is also a deliberate untruth made dishonestly by KRA to obtain the court orders freezing the accounts. They know we don’t manufacture alcohol and act as importers of liquor, which they already tax before entry into the country,” argued Kariuki.
In the application Kariuki wanted the court to order the reopening of the Thika factory and lifting the orders that froze the companies’ accounts.
He also wanted an order restraining KRA from further taking action to recover the alleged tax arrears.