Indian Businessman Charged for Allegedly Evading Tax Worth Billions in Kenya

A businessman from India was charged on April 6 in Kenya for allegedly evading tax amounting to over KSh 11 billion. Parmar Kirit Kumar Ranchodbhai, who appeared before Chief Magistrate Francis Andayi at Nairobi, pleaded not guilty to four counts of failing to pay tax, reported Daily Nation.

Ranchodbhai allegedly failed to declare an amount of KSh 3,421,645,274 value added tax (VAT) returns to Kenya Revenue Authority for his income between June 1 and Dec. 31, 2015 at Kasarani in Nairobi. According to the requirements of the Value Added Tax Act, the amount was supposed to have been declared to the commissioner.

Ranchodbhai was also charged with intentionally leaving out VAT returns amounting to KSh 8,037,383,938 for his 2016 income. According to the third count, he failed to declare KSh 237,177,262 VAT returns in 2017.

He has also been charged for failing to file income tax returns with the Commissioner of Domestic Taxes within the due date for his 2015 and 2016 income as per the law. The prosecution urged the court to reflect on the fact that the businessman has an Indian passport and that he might be a flight risk.

“I am a law abiding citizen and not a flight risk as I will avail myself in court when needed,” Ranchodbhai said at the court, the Standard Digital reported.

The court ordered that the Indian businessman be released on a surety bond of KSh 3 million with an alternative cash bail of KSh 1.5 million. The magistrate also ordered Ranchodbhai to be detained till the procedures of completing the surety are over. The court said that his passport should be submitted in court as a condition for his release.

“We kindly request this court to release the accused on lenient bond term. He is married and works in Bungoma and he also undertakes to attend full hearings until the end of his trial,” Ranchodbhai’s lawyer Nick Biketi said, reported Daily Nation. The case is scheduled to be heard on April 25.

The Indian businessman was charged right after another businessman from Nairobi, Keval Kumar Navin Maisura, was charged on April 5 with evasion of tax worth KSh 7 billion in what is being described as one of the biggest such court cases in Kenya recently, according to Daily Nation. Among other charges, Maisura was accused for fraudulent registration of names of nine businesses. He also made fake invoice worth more than KSh 15 billion.