Six directors of a company dealing in the lucrative motorcycles (boda boda) trade within Marsabit County have today been charged with 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 appeared before Nyeri Court Senior Resident Magistrate Hon. Faith Muguongo. The six failed to declare the correct amounts of taxable income between 2016 and 2018 to reduce and evade payable income tax liability. The accused further failed to declare the correct amounts in sales of vatable goods hence evading payment of value added taxes (VAT).
The company is dealing in buying and selling of motor cycles within Moyale Town and despite making sales amounting to Kshs. 3.4 billion 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 2015. The accused denied all the charges and were each released on a bond of KShs.2 million and alternative bail of Kshs 1 million. The case will be mentioned on 14th November 2019.
Meanwhile, a businessman John Githua Njogu appeared before Milimani Court Chief Magistrate Hon. Francis Andayi and pleaded not guilty to nine charges of tax evasion amounting to Kshs. 31 million. Githua, who deals in supplies of general merchandise failed to declare income earned and pay the requisite taxes between 2013 and 2016. He has not registered for VAT Obligation whereas he trades on vatable goods and he had reached the threshold required for one to register. He was released on a bond of Kshs. 1 million and alternative bail of Ksh 500, 000. The case will be heard on 4th December 2019.
Elsewhere in Mombasa, Jamal Abdulrahman Mao, a director of Muzdalifa Clearing & Forwarding Limited, Ahmad Karama Omar, a director of Ruthana Motors Limited, and Said Maridadi Maulana, a director of SAS Africa General Trading Limited separately appeared before Mombasa Senior Resident Magistrate Mr Vincent Adet. They were charged with colluding to evade import duty totalling Kshs. 15 Million by using an incorrect depreciation rates for imported motor vehicles. They denied the charges and were each released on a bond of Kshs. 1 million and alternative bail of Kshs. 100,000. The case is set to be mentioned on 18th November 2019.
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 KShs. 60 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.