CEO of Keroche Breweries, Tabitha Karanja, has entered a not-guilty plea to new allegations of tax evasion.
The prosecution's motion to modify the charge sheet in the Ksh. 14.5 billion tax evasion case led to the charges. When Keroche appeared in court on Thursday, her attorneys informed the judge that they preferred an out-of-court settlement.
However, a KRA officer, Irene Muthee, informed the court that there had not been a deal to resolve the dispute out of court because Keroche would have had to notify the commissioner in writing per the Tax Procedure Act.
To avoid a full trial, the court ordered Keroche 45 days to start the process of reaching an out-of-court settlement. In late 2022, the IRS filed a lawsuit against Keroche Breweries for contempt of court. This comes after Keroche failed to comply with a new payment plan imposed by the same court, requiring the brewer to honour current taxes and make monthly payments on the tax debt.
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Keroche allegedly failed to honour payments totalling Ksh. 30.3 million, including the payment of Ksh. According to the taxman's application, sixteen million in two equal instalments in August. Furthermore, Keroche currently owes taxes amounting to Ksh. 14.3 billion
In its application to the court, KRA says that Keroche Breweries Limited has been consistently disregarding the court order of July 14 last year, notwithstanding that order was issued in the presence and with knowledge and understanding of the counsel of Keroche Breweries
According to KRA, it had written to the company's management multiple times to remind them to settle the tax debt throughout August but had not received a response.
KRA wished for Tabitha Karanja, the CEO of Keroche, and Joseph Muigai Karanja, the director, to be found in contempt of court and sentenced accordingly.
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