Directors Charged with Tax Fraud Amounting Kshs.1.4 billion

PRESS RELEASE 14/10/2019

Two directors of a computer company were today charged with ten counts of tax evasion charges amounting to Kshs.1.4 billion before Milimani Court Chief Magistrate Hon. Francis Andayi.

The two; Mr. George Bhutto Abiga and Bernard Ochieng Okello both directors of Olympus Computer Garage Limited were charged with various counts including under-declaration of customs value of goods to reduce payable taxes, claiming tax relief through use of fictitious invoices, failing to declare sales, omitting taxable income from returns and failing to submit returns. The accused persons were arrested on 9th October 2019. 

The offences were committed between the years 2014 and 2016. They denied all the charges and were each released on a bond of Kshs. 5 million and alternative bail of Kshs. 2 million. The court is set to hear the case on 6th November 2019.

KRA has noted that high valued goods are being brought into the country through Jomo Kenyatta International Airport (JKIA) by importers who underdeclare their value hence paying less duty. The Authority is keenly monitoring all imports through the JKIA and those found culpable will be prosecuted.

Meanwhile two people were also charged with illegal importation of ethanol worth Kshs. 3 million before the same court. The suspects, Mr. Edward Ngure Njuguna and Mr. Duncan Mutuma Justus are accused of importing 42 drums of 250 litres and four jerry cans of 20 litres each of ethanol concealed and packed with maize and rice bran. The importation of concealed goods is contrary to section 202 of the East African Community Customs Management Act, 2004 (EACCMA 2004).

Mr. Ngure and Mr. Mutuma Justus were also charged with conveying and being in possession of the unaccustomed goods within Kamandura area of Limuru Sub County in Kiambu County on 30th September 2019. This is contrary to provisions of the EACCMA 2004. The suspects denied all the charges and were released on bond of Kshs. 1 million and alternative bail of Kshs 500,000. The case is also set to be heard on 6th November 2019. 

In 2015 the Government of Kenya introduced procedures to govern access; purchase and importation of ethanol to combat illicit production and consumption of spirit based beverages. The procedures are based on provisions of Customs and Excise Act. The move took effect from 1st September 2015.

 

Commissioner, Investigation & Enforcement-David Yego

Did you find this content useful?

Average Rating

5
Based on 1 rating