4 arrested as KRA raids Platinum Distillers over tax evasion claims

Kenya Revenue Authority (KRA) officials on Sunday raided and closed down Platinum Distillers Limited in Ruiru, Kiambu County for allegedly concealing imported goods in a plot to evade tax.

Speaking on Sunday during the raid, KRA’s head of tax investigations Edward Karanja said they received a tip off that the firm had imported a consignment of raw material that was not properly declared in order to pay lower taxes.

According to Dr. Karanja, the imported material is believed to be ethanol and should have seen the company pay at least Ksh.14 million in taxes. However, the consignment was declared as raw material for making packages and not alcohol, hence, the company paid Ksh.382,000 as tax.

“The label indicates that this is raw material for making the packaging materials but for us to confirm what it is, we have to carry out laboratory tests. But from the manufacturer, where the material is sourced this is purely ethanol,” said Dr. Karanja.

“Ethanol is normally packed in drums but this one is disguised. So we have to wait for the laboratory tests to conclusively confirm what it is.”

Four people including the drivers who were driving the trucks ferrying the goods and the clearing agents have since been arrested.

Meanwhile, the directors of the company have been directed to surrender themselves as investigations into the matter continue.