ECONOMY

In Tax Evasion Case, Client and Advisor Face KRA in Court

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Kenya Revenue Authority headquarters at Times Tower Nairobi.
Being in possession of motor vehicles for which duty has not been paid is an offence under section 200 (d) (iii) as read together with section 210 (c) of the East African Community Customs Management Act 2004.
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Three tax agents were on Friday 27th Sept. 2019 charged at a Mombasa court for aiding two companies to fraudulently reduce their Value Added Tax (VAT). The directors of the two companies were also charged.

The tax agents from Ogot & Associates, together with directors of Gaab Transporters Limited and Samumu Construction Services, were charged with several counts in two separate cases. They appeared before Mombasa Senior Resident Magistrate Christine Ogweno.

In one of the cases, the accused persons were jointly charged for knowingly making an incorrect statement to the Commissioner for Domestic Taxes in the company’s Value Added Tax (VAT) returns for the months of March, April, May and June 2016 thereby reducing the company’s VAT liability for the months by Ksh1,593,908.

Those charged were Mohamed Moalin Mohamed, a director of Gaab Transporters Limited as well as Wilson Ogot Owera, David Osore Wesonga and Rolland Anakaya Chiriswa, tax agents to the company.

In the second case, Sammy Kamuio, a director of Samumu Construction Services Limited together with tax agents Wilson Ogot Owera, David Osore Wesonga, and Rolland Anakaya Chiriswa, were charged for making an incorrect statement to the Commissioner for Domestic Taxes in the company VAT returns for the month of April 2016, thereby reducing the company’s VAT liability for the month by Ksh552,672.

Accused plead not guilty

The total amount of tax evaded by both companies amounts to Ksh2,146,580.

All the accused pleaded not guilty in both cases and were released on a bond of Ksh200,000 with an alternative cash bail of Ksh100,000. The two cases will be heard on 17th October 2019

The court summoned Ali Osman Osman, a director of GAAB Transporters Limited, and Abdulhamid Habia  Khan and  Jones Muthengi Mukuri, directors of Samumu Construction Services Limited,  to appear on 17th October 2019.

NEXT READ >> HOW TO APPLY FOR KRA TAX WAIVER

Written by
BT Reporter

editor [at] businesstoday.co.ke

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