Businessmen arrested for tax evasion amounting to Kshs. 273 million

Businessmen arrested for tax evasion amounting to Kshs. 273 million

BY KORIR JUMA,NAIROBI,16TH OCT 2019-Two businessmen Ali Hassan Apei and Bashir Hassan Abbey Mamo, both directors of Microbit Systems Limited have been arrested for tax evasion amounting to Kshs. 273 million.

The two evaded payment of taxes from 2013 to 2017.

 Kenya Revenue Authority (KRA) received intelligence report that Microbit Systems Limited had successfully benefited from tender proceeds from county governments and government ministries.

These include Mandera and Marsabit county governments, State Department for Special Programs, State Department for Basic Education, State Department of Devolution and Ministry of Interior & Coordination and failed to remit taxes due from the payments of tenders given. The two directors are being held at the Capital Hill to be arraigned in Milimani court today, 16th October 2019.

Meanwhile KRA has  arrested a director of Simptons East Africa Holdings Limited, Simon Odhiambo Adalla one of the six clearing agents for using wrong trade tariffs (customs duty rates). Using Simptons East Africa Holdings Limited, the suspect fraudulently evaded duty amounting to Kshs.3 million by using an incorrect customs duty rate of 10% instead of the applicable 25% in respect of the motor vehicles imported under various customs entries.

 The suspect will be arraigned at the Chief Magistrate’s Court in Mombasa today ,Wednesday, 16th October 2019. The arrests follow lengthy investigations carried out by KRA.

 KRA  has urged  all importers to ensure that they pay import duty themselves to avoid cases where middle men and women take their money but fail to remit the correct taxes. This will support the KRA initiative of enhancing tax compliance in the country.

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