Six directors of a company dealing in the lucrative motorcycles (boda boda) trade within Marsabit County have been arrested for tax evasion related frauds amounting to KShs 698 million. Ali Ibrahim Dida, Hassannoor Adan Ali, Kose Isatu Hirbo, Ibrahim Worku Hirbo, Wako Bate Hirbo, Abdullahi Mamo Jillo, all directors of Northern Auto Dealers Limited were arrested after they failed to declare income earned for the period between the years 2016-2019 from the returns filed on behalf of the company.
The company is dealing in buying and selling of motor cycles within Moyale Town and despite making sales amounting to Kshs 3,420,942,711 between 2016 and 2019, the business failed to declare the income earned nor pay the requisite taxes for both VAT and Corporation Tax.
Failure to declare taxable income is a tax fraud under section 97 (a) as read with section 104 (3) of the Tax Procedures Act. The suspects are currently held at the Nyeri Police Station and will be charged at the Nyeri Law Courts on 31st October 2019.
If convicted, the accused will be liable to a fine not exceeding KShs 10 million or double the tax evaded whichever is higher or to imprisonment for a term not exceeding ten (10) years, or both.
Kenya Revenue Authority (KRA) has aggressively embarked on eliminating tax evasion in the country which has led to several arrests and prosecutions that have resulted to unearthing of over KShs60 billion worth of taxes evaded which KRA is in the process of recovering.
Taxpayers are encouraged to pay their taxes in time and remain compliant with tax laws in order to avoid punitive enforcement measures including prosecution.
Commissioner, Investigation and Enforcement Department- David Yego