The Kenya Revenue Authority (KRA) has detailed how former shareholders, company representatives, and foreign staff allegedly withdrew Sh604 million from Oki General Trading Limited’s bank accounts during an audit period.
The revelation emerged in a case where the company is challenging KRA’s Sh827 million tax demand before the Tax Appeals Tribunal.
KRA’s Findings
According to KRA, Anil Kumar Ramchandani served as the company’s head office representative, while Jatin Aswani and Jayesh Soni were foreign staff members. Honey Khatwani, a former director, and several employees are said to have collectively withdrawn the Sh604 million from Ecobank and Absa accounts.
The Commissioner of Domestic Taxes has since urged the Tribunal to dismiss Oki General’s appeal and uphold the full tax assessment.
Unpaid PAYE and Employment Issues
KRA told the Tribunal that a review of employment contracts for Wadhwani, Aswani, Khatwani, and Soni showed that their remuneration was not subjected to PAYE, contrary to Section 5 of the Income Tax Act (ITA).
Oki General has already conceded to owing Sh3.9 million in unpaid PAYE on staff salaries.
During a meeting on February 17, 2025, KRA noted that other staff included Winrose Syomiti, Purity Muoki, Fred, Daniel, Harish Choudhary, Deepak Rajoriya, and Gorvit Bhati, but their employment details were not fully supported with contracts or records.
Missing Documentation
KRA said Oki General failed to provide crucial documentation, including:
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The company organogram and complete staff list
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Payslips or proof of salary payments
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Asset register and ownership proof for capital items
The authority added that the company’s PAYE computation period was inaccurately stated, covering October 2024 to March 2025, not September 2025 as claimed.
Questionable Payments
KRA told the Tribunal that payments to Bhambhani Kumar, Maniash, and Muntaz were classified as employee remuneration after the company failed to submit invoices or supporting documents.
Similarly, funds paid to Satnam Limited were treated as staff drawings and subjected to PAYE, as Soni and Aswani—Oki General employees—were also listed as Satnam directors on the iTax profile.
Oki General had claimed the Satnam payments were unauthorized and possibly linked to misappropriation by a former director, but KRA said the firm failed to produce a forensic audit report or reconciliation records to support that claim.
Corporate Tax Assessment
On corporate tax, KRA rejected Oki General’s assertion that a 3% to 5% profit margin was more realistic than the 20% applied in the assessment, noting that the firm failed to provide evidence to justify the lower figure.
The tax authority further said the company never submitted closing stock analysis or audited financial statements, undermining its position before the Tribunal.
The Tribunal Case
KRA has asked the Tax Appeals Tribunal to dismiss Oki General Trading Limited’s appeal in its entirety, maintaining that the company engaged in systematic non-compliance, failed to remit employee taxes, and concealed key records during the audit period.