Tycoon Zuku founder accused of delay tactics in Sh3.4bn tax case

Zuku founder Richard Bell. FILE PHOTO | NMG

What you need to know:

  • The accusations are contained in papers filed by the KRA in response to Mr Bell’s application seeking to suspend a High Court ruling that allowed his rival shareholders to participate in the case, pending determination of an appeal against the decision.
  • The High Court in January allowed Wananchi Nominees Limited, International Consulting Limited (formerly known as ISP Kenya Limited) and East Coast Telecoms Limited to be enjoined in the suit to help the taxman prove his case against Mr Bell.
  • The three applicants had told the court that they had information that the KRA does not have with regard to Mr Bell’s responsibility as the representative of the offshore companies.

The taxman has accused businessman Richard Bell, a founder of the Internet and Pay-TV service provider Zuku, of engaging in delay tactics to prolong the prosecution of a case in which Kenya Revenue Authority (KRA) is accusing offshore firms associated with him of tax avoidance.

The accusations are contained in papers filed by the KRA in response to Mr Bell’s application seeking to suspend a High Court ruling that allowed his rival shareholders to participate in the case, pending determination of an appeal against the decision.

The High Court in January allowed Wananchi Nominees Limited, International Consulting Limited (formerly known as ISP Kenya Limited) and East Coast Telecoms Limited to be enjoined in the suit to help the taxman prove his case against Mr Bell.

The three applicants had told the court that they had information that the KRA does not have with regard to Mr Bell’s responsibility as the representative of the offshore companies. This, they said, makes him directly answerable on the suspected tax avoidance.

Mr Bell moved to court seeking to reverse the KRA’s decision requiring him to take responsibility for a Sh3.4 billion tax fraud case against the offshore companies.

“Since filing the main application and obtaining stay of execution of the commissioner’s decision to appoint him as a tax representative the applicant has done little to prosecute the main application,” says the KRA in response to Mr Bell’s application to suspend hearing of the application as he appeals against admission of his rival shareholders by High Court.

The KRA wants Mr Bell to be held responsible for the taxation of Wananchi Satellite and Wananchi Programming, both based in Mauritius, but whose operations the taxman claims are in Nairobi.

But Mr Bell has denied the accusation, saying the assertion by the KRA he is not interested in the speedy resolution of the matter is misleading.

He says at no time had the matter been adjourned because of his own making but due to the court not sitting.

Mr Bell says his rival shareholders can share the information they claim to be holding, arguing that their only intention is to embarrass him not to help the court.

The High Court will hear Mr Bell’s application in which he seeks to suspend the decision to admit the rival shareholders pending appeal in July.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.