Contractors charged with Kshs 35.7 million tax fraud

PRESS RELEASE 30/10/2019

Two contractors were this morning charged before the Milimani Court Chief Magistrate Hon. Kennedy Cheruiyot with several counts of tax evasion amounting to KShs 35.7 million.

The two contractors; Yussuf Khalif Bulle and Abdirahim Osman Yarrow, both directors of El-Yumo Contractors Limited, jointly faced eleven counts which involve failure to pay taxes, falsifying accounts statements to reduce tax liability and failure to file tax returns all happening between 2014 and 2018.

The accused, in their statements, deliberately failed to declare taxable income by filing nil returns and also failed to declare the correct amounts of taxable income to reduce Value Added Tax (VAT) liability for various years of income.

The two had been awarded contracts by the Judiciary and Kenya Urban Road Authority to construct Mandera Law Courts and routine maintenance of lot 5Y roads in Dandora and Kariobangi area respectively.

Kenya Revenue Authority (KRA) has aggressively embarked on eliminating tax evasion in the country. This 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. Some of the tax evasion cases include those of failure by taxpayers to pay duty, fraud in relation to tax, failure to submit tax returns by due date amongst others.

 

Commissioner, Investigation and Enforcement Department- David Yego

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