BUSINESS

KRA Busts False PINs Tactics Traders Use to Dodge Tax

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Two traders who were busted in separate but similar tax evasion schemes involving use of false Kenya Revenue Authority (KRA) Personal Identification Number (PINs) to evade taxes have been charged at Milimani Law Courts.

In the first case, Ms Charity Wamaitha Mwangi presented a false KRA PIN to a Clearing Agent for her imported goods to be cleared and released by Customs officials. Investigations established that on diverse dates between May and August, 2023, Wamaitha presented invoices and Import Declaration Forms bearing KRA PINs that belong to Blemar Investments Limited to her Clearing Agent – Ebmar Investments Ltd for clearance of two import entries.

Wamaitha was charged with causing declarations which are false contrary to Section 203(b) of the EACCMA, 2004. She appeared before Principal Magistrate Geoffrey Onsarigo, where she denied the charges and was granted bond of Ksh500,000 with one surety. The case will be mentioned on 12th May, 2025.

In a similar scheme, Nairobi based businessman Samuel Ringui Mwangi, who appeared before Senior Principal Magistrate Ben Mark Ekhubi, used a KRA PIN registered in the name of Jobesa Designers Limited to issue Jade Collection Limited with Electronic Tax Register (ETR) receipts from 2020 to 2023.

Ringui was charged with a count of using a false KRA PIN on a document for purposes of tax law contrary to Section 91 As Read with Section 104(1) of The Tax Procedure Act 2015. He denied the charge and was granted a bond of Ksh300,000 By purporting to be the owners of the PINs, the accused evade payment of taxes by leaving the tax liability to true owners of the PINs.

KRA says its Investigations & Enforcement Department is actively unearthing tax evasion schemes orchestrated by unscrupulous business persons to ensure tax compliance and adherence to tax laws and procedures. This will in turn promote fair trade competition within the market. “Taxpayers are urged to pay their taxes in order to avoid punitive enforcement measures being taken against them including prosecution,” KRA says.

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Written by
BT Reporter

editor [at] businesstoday.co.ke

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