The Kenya Revenue Authority has on its tax investigations findings established that alcohol manufacturing company, Platinum Distillers has a tax evasion plot of upto Sh14 million.
The factory was therefore shut as four people were arrested.
Dr Edward Karanja, the KRA’s head of tax investigations, explained that Platinum concealed its imported goods as raw materials for making alcohol in order to pay less in taxes.
He said that whereas the distiller paid Sh383,962, a preliminary report indicated the consignment was packaged at an ethanol producing company in India, so the company should have paid up to Sh14 million in taxes.
KRA also summoned the company’s directors but they did not turn up and are assumed to have gone into hiding.
Drivers of two trucks, a clearing agent and a worker were arrested.
The distiller located at Infinity Business Park along the Eastern bypass produces Ferrari Ice beer with 10 percent alcohol and spirits including People Vodka and Magic Times.