Directors charged with tax evasion amounting to Kshs. 273 million

PRESS RELEASE 16/10/2019

Two businessmen Ali Hassan Apei and Bashir Hassan Abbey Mamo, both directors of Microbit Systems Limited have been charged today before Milimani court Chief Magistrate Hon. Martha Mutuku with tax evasion amounting to Kshs. 273 million.

The two were charged with ten counts of fraud in relation to tax contrary to Section 97 (a) as read with section 104(1) of the Tax Procedures Act, 2015. The counts’ particulars include failing to declare in the company’s tax returns the income, failure to pay corporation tax and failure to file tax returns within the years 2013 to 2017. 

The accused persons denied all the charges and were released on a bond of Kshs 2 million and alternative bail of Kshs 1 million. The case will be mentioned on 5th November 2019. 

The Kenya Revenue Authority (KRA) has embarked on an aggressive tax compliance strategy to ensure all eligible taxpayers pay their fair share of taxes. KRA has implemented various initiatives targeting all Kenyans who fall in the taxpaying bracket to ensure they meet their tax obligations. KRA is committed to pursue those who fail to honour their tax obligations.

Since the start of the crackdown on tax evaders, KRA has prosecuted 118 individuals with assessed revenue of Ksh 54.3 Billion between 1st July and 30th September 2019. During the last Financial Year (2018/2019) KRA recovered Kshs 8.53 billion from 222 tax evasion cases won.

Sectors which have been found to be commonly used to evade taxes include betting, electronics importers, excisable goods manufacturers, steel and hardware manufacturers, county suppliers, high-end motor vehicle importers and construction sectors.

Taxpayers are encouraged to pay their taxes in time and remain compliant with tax laws in order to avoid punitive enforcement measures including prosecution. KRA remains committed to building taxpayers trust through facilitation to foster Compliance with Tax and Customs Legislation to continually improve service delivery and revenue collection. KRA also endeavours to make taxpaying experience better through provision of a courteous and professional service.

Commissioner, Investigation and Enforcement Department- David Yego

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