Two owners of Microbit Systems, Mr Ali Hassan Apei and Mr Bashir Hassan have been charged with failing to remit taxes amounting up to sh237 million.
The company which is contracted by the government to distribute relief food to affected families in Mandera, Marsabit, Garissa and other drought-prone areas in the north Eastern region has been charged with 10 counts of tax evasion.
Defending both suspects, Legal counsel Phillip Murgor told chief Magistrate Martha Mutuku Mr Hassan had resigned from the company in 2012 and should not even have been charged at all since the charges complained of are for the years 2013-2019.
“The government has not paid Microbit over Sh200million for services rendered which is almost the amount alleged to have been defaulted in tax,” Mr Murgor told Ms Mutuku.
The lawyer claimed efforts to negotiate with the taxman were in vain. “We presented proposals of settling the tax claim to KRA but officers declined and insisted on charging the directors,” Mr Murgor said.
The accused were released with a cash bail of Sh1 million each. The case will be heard on November 5.