London Distillers Director Mohan Galot freed on Ksh.1M cash bail in tax evasion case
London Distillers Kenya Limited Director Mohan Galot was Wednesday arraigned at Milimani Law Courts over evasion of taxes amounting to Ksh.2.1 billion.
Mr. Galot is facing a total of 18 counts among them failure to pay taxes contrary to Section 95 as read with section 104(1) of the Tax Procedures Act, 2015.
He pleaded not guilty before Magistrate Martha Mutuku and was released on a cash bail of Ksh.1 million.
The case will be mentioned on August 9th this year.
In the first count Galot together with the company, London Distillers Kenya Limited, are alleged that between January 2016 and December 31, 2016 being the director of the company unlawfully omitted from Excise Duty returns for the year 2016.
This included production volumes totaling to 164, 539 litres of ready drinks and 2,902,662 of spirit which ought to have been declared as required by law.
According to the charge sheet, he also faces charges of omitting from tax returns production volumes and sales amounts contrary to section 97 (a) as read with section 104 (3) of the Tax Procedures Act, 2015.
A probe into London Distillers (K) Limited found that the firm and its director devised a scheme to evade taxes, including Excise duty on locally manufactured spirits, VAT and Corporation taxes.
Investigations revealed that the accused engaged in a scheme of gross under-reporting of production and sales volumes and purchase of packaging materials through associated firms.