Following the revelations that Kenya Revenue Authority (KRA) has unearthed a 250 billion tax evasion by a couple of crafty businessmen, it seem the tax agency has began toncrsc the whip.
In the statement shared below, KRA nabbed two directors and slapped rhei company with a tax demand of Ksh1.4 billion.
Two directors of a computer company have been arrested for tax evasion amounting to Kshs.1.4 billion.
The two Mr. George Bhutto Abiga and Berard Ochieng Okello both directors of Olympus Computer Garage Limited are suspected to have deliberately failed to declare taxes due from sales they made to Mitsumi Computer Garage between September 2014 and August 2016. Instead, the suspects filed nil returns for Corporation Tax and did not disclose the business transactions.
Further investigations by KRA also revealed that Olympus Computer Garage Limited had imported various computer gadgets and accessories such as laptops, flash drives which attract zero duty but are charged 16% Value Added Tax (VAT) as well as Railway Development Levy (RDL), which they also failed to declare.
The company equally failed to file Value Added Tax (VAT) for the year 2014 and instead filed NIL returns for the year 2015 and 2016 intentionally avoiding to declare sales of over Kshs. One billion.
The two will be arraigned in court on 11th October, 2019. If found guilty, the suspects are likely to be fined an amount not exceeding ten million shillings or double the tax evaded, whichever is higher or to imprisonment for a term not exceeding three (3) years.
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.
Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]