Liquor billionaire fights KRA over Sh3bn tax evasion case : The Standard

• Paul Ogemba
• Posted on: 06th Mar 2019 00:35:00 GMT +0300

Billionaire businessman Humphrey Kariuki has launched a fightback for his business empires in Thika town. A month after his liquor firms were closed by the Kenya Revenue Authority and his companies’ accounts frozen over a Sh3 billion tax evasion claims, the businessman has gone to court seeking the reopening of his factories and lifting of the freeze orders. Mr Kariuki has accused KRA of lying about his multi-billion shillings businesses with the intention of causing him to lose business opportunities and paint him in bad light with his business partners globally. “There is a premeditated, well-coordinated and persistent scheme devised by KRA to malign my reputation and cause me business loss. They lied to court and brought dishonest allegations to obtain orders freezing my companies’ accounts,” said Kariuku in court papers.

Business rivals

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He claimed the whole saga was a plot by his business rivals to cripple his companies through use of State machinery and cause him massive losses. Kariuki described himself as an investor and venture capitalist involved in various investments in several companies in Africa and Europe. The taxman, assisted by a multi-agency team, raided Kariuki’s Africa Spirits Ltd and WOW Beverages Ltd factories in Thika town on January 31, and closed them down over allegations of tax evasion. On February 11, KRA wrote to Director of Immigration with instructions to stop the departure of Kariuki and directors of the two companies on grounds they could flee the country to escape tax liability amounting to Sh1.2 billion. It obtained court orders on February 22 freezing the accounts of Africa Spirits Limited, WOW Beverages and Wines of World Limited over claims of making supplies of alcoholic beverages fixed with counterfeit excise stamps, hence denying the authority Sh3 billion in revenue.

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But the businessman submitted that KRA deliberately failed to enjoin him in the suit as a director in the companies to deny him audience and mislead the court in reaching unjustified decision.

The accounts

“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,” swore Kariuki. He wants the court to order the reopening of the Thika factory and lifting the orders that froze the companies’ accounts. He also wants an order restraining KRA from further taking action to recover the alleged tax arrears. The case is scheduled for hearing on Friday.

Related Topics

KRAbusinessman Humphrey KariukiAfrica Spirits Limited