Trader faces KShs.460, 000 tax evasion charge

A company director, Mr. Fartum Ahmed Mohamud Jama, has been arraigned before Eldoret law court on seven counts of tax evasion amounting to KShs. 467,166/=. Mr. Fartum made incorrect statements in their VAT returns by using fictitious invoices belonging to Baba Hardware and General Store Limited which was no longer trading. The use of the invoices reduced the tax liability by Kshs 467,166. Several other companies which are under investigation used the invoices. This amounts to fraud in relation to tax contrary to section 97(c) of the Tax Procedures Act.

The accused pleaded guilty/not guilty before Hon Barnabas Kiptoo Senior Resident Magistrate and was fined/released on a bond of KShs.100,000 or alternative bail of KShs. 20,000. The case will be heard on 31st January 2022. If convicted, a fine not exceeding KShs. 10 million or double the tax evaded, whichever is higher or imprisonment for a term not exceeding 5 years Tax Procedures Act.

Meanwhile, Isaiah Gitau Kuria and Gilbert Mwangi Kimani who is a driver respectively, have been fined to pay Kshs 50,000 or 6 months imprisonment pleaded guilty they have been after they pleaded guilty being in possession of Excisable goods without affixing excise stamps worth KShs 358,082.40 in taxes before Milimani court Chief Magistrate Hon. Wendy Kagendo. They were found transporting 1200 cases of Azam Energy drink and 100 cases of apple punch drink which were not affixed with excise stamps as required by Section 30(1) (f) as read with Regulation 30(1) (2) of Excise Duty Systems Management Regulations 2017.

The two were arrested on 4th November 2021 by KRA officers after their truck was intercepted with the goods along General Waruinge Road which was suspected to be conveying excisable goods which were not affixed with excise stamps.

Commissioner for Investigations & Enforcement


PRESS RELEASE 03/12/2021

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Trader faces KShs.460, 000 tax evasion charge