MP Stanley Muthama now wants to settle Ksh487M tax fraud case out of court

Lamu West Member of Parliament Stanley Muiruri Muthama now wants to settle a Ksh487 million tax fraud case out of court.

The MP, who appeared in an Eldoret Court after a warrant of arrest had been issued against him, said he was in talks with the prosecution to have the matter settled out of court.

The court had issued a warrant of arrest last week after the MP failed to attend mention of his case.

It was however lifted after he appeared in court physically and made the application to have the matter settled out of court.

The matter will now be mentioned on April 25 to confirm whether parties have agreed to settle the matter out of court.

The MP was charged in 2019 with 13 counts relating to tax evasion of over Ksh400 million.

Kenya Revenue Authority accused him of deliberately failing to pay Corporation Tax, Value Added Tax (VAT) and Pay As You Earn (PAYE) amounting to Ksh487, 914,642 from 2013 to 2017.

He allegedly committed the offence in Kericho, Kajiado and Nakuru counties.

He was charged alongside his company Stansha, with knowingly making incorrect statements in the income tax company returns of Stansha Limited, which led to tax liability of Ksh12, 791,499 in 2013.

The court also heard that together with his company, the MP knowingly made an incorrect statement in the VAT returns of the said company, attracting a tax liability of Ksh6, 998,188 in 2013.

In 2015, he is said to have knowingly omitted Ksh55, 122,584 from the VAT returns of the said company.

In 2015 and 2017, the legislator is said to have omitted Ksh5 million from returns of PAYE of the company employees.