Businesswoman freed on Ksh.2M cash bail in Ksh.28M tax evasion case

Niwax Solutions Limited Director Michelle Wanjiru Ngaruiya has been charged with seven counts of tax fraud contrary to section 97(a) as read with Section 104(3) of the Tax Procedures Act, 2015.

Wanjiru appeared before Nakuru Law Courts Chief Magistrate Elizabeth Juma on Wednesday where she pleaded not guilty to all charges.

The court heard that between 2020 and 2023, the company had received income of Ksh.257,604,812 but failed to disclose the same to the Commissioner resulting in a tax loss of Ksh.28,297,454.

Wanjiru, who was charged alongside the company, pleaded not guilty to all counts and was granted cash bail of Ksh.2 million or an alternative bond of Ksh.5 million.

If convicted, she will be liable to a fine not exceeding Ksh.10 million or double the tax evaded, whichever is higher, or imprisonment for a term not exceeding 5 years as per the provisions of the Tax Procedures Act.

The Kenya Revenue Authority (KRA) noted that, through its Investigations and Enforcement Department, it continues to unearth schemes orchestrated by unscrupulous business persons to ensure that all tax laws and procedures are strictly adhered to with a view to promote fair competition/trade within the market.

The authority has urged taxpayers to remain vigilant in ensuring they remain tax-compliant.