The Kenya Revenue Authority (KRA) has stepped up its pursuit of alleged tax cheats, with the backing of the office of the Director of Public Prosecutions (DPP), in a bid to bolster revenue collection.
Last week, scores of traders were presented before a Nairobi court to face charges related to tax evasion.
Others failed to turn up in court, forcing the prosecution to seek warrants of their arrest, which was granted by the court.
Renson Ingonga, the DPP, promised to crack the whip in a bid to ensure traders pay taxes due to them.
“I wish to put businesses not paying taxes on notice. We recently made the decision to prosecute business people who have been evading taxes,” Mr Ingonga said in a statement.
The DPP added that the war on those who have been denying the government revenue was on and that his office will work with other investigative agencies to ensure that businesses play their part in the growth of the economy.
Mr Ingonga said prosecution of suspects is aimed at deterring and disrupting tax fraud schemes that lead to leakage as well as unfair competition in the market.
The taxman has been aggressive on alleged tax evaders in a bid to meet revenue targets.
In the past, the KRA was accused of being unpredictable and over-burdening a few persons and firms in the formal sector with increased taxes.
KRA said it was committed to ensuring that each person pays their fair share of taxes in order to enable a fair business environment and avoid undue fraudulent competition.
“We continue staying alert to ensure that any form of tax evasion is detected, disrupted and curbed with the perpetrators facing the criminal justice process for their crimes,” Ms Sheila Sanga, the acting deputy commissioner prosecution at KRA said, adding that investigation and enforcement department at KRA works closely with the DPP’s office in tax evasion cases.
Ms Sanga added that the deployment of robust investigations and intelligence techniques and the multiagency team collaboration has led to successful interceptions of illicit goods across the country to curb illicit trade and other transnational crimes to ensure Kenya’s national interests are safeguarded.
Further, she said KRA was undertaking comprehensive tax investigations and prosecution of tax law offenders to disrupt and deter tax evasion and enhance tax compliance.
“KRA is committed to ensuring that each person pays their fair share of taxes in order to enable a fair business environment and avoid undue fraudulent competition. We continue staying alert to ensure that any form of tax evasion is detected, disrupted and curbed with the perpetrators facing the criminal justice process for their crimes,” she added.
Ms Saga said KRA continues to be vigilant in the fight against tax evasion and other tax malpractices through intelligence led and prosecution-guided investigations.
The traders who appeared in court and were released on bond include Mr Michael Wafula Obunde, Mr Jesse Michael Muganda and Mr Clifford Otieno of Geo Freight Forwarders Ltd. They denied charges of making false customs entries using a KRA PIN registered to Di Lorenzo Limited.
Also charged were Mr Joseph Ndungu Guchecha, Mr Ramadhan Kariuki Gitau, Mr Edwin Wanjala Barasa and Francis Kyalo Mwandandu denied charges of stealing 38 tonnes of condemned milk powder. They were each ordered to deposit bond of Sh200,000, to secure their release.
The traders who failed to appear in court were accused of filing false purchases amounting to millions of shillings, thereby reducing their value added tax (VAT) liability.
They included Benson Otieno Kisero and Eunice Opili Likuyani, both directors of Wise Pick Trading Limited, who face charges of false purchases amounting to Sh11.8 million, a move that reduced their VAT liability by Sh1.8 million.
The duo allegedly filed fake purchases amounting to Sh357 million, an offence they allegedly committed between February 20, 2022 and January 20, 2023, thereby reducing their tax liability by Sh57 million.
A third count stated they filed fake purchases amounting to Sh281 million, thereby reducing their VAT liability by Sh45 million.
The court also issued a warrant for the arrest against Ms Jemimah Nasiche, the proprietor of Priteria Limited, who was accused filing fake purchases amounting to Sh38.6 million, thereby reducing VAT liability by Sh6.1 million.
Ms Nasiche is also accused of filing fake purchases amounting to Sh107.6 million, an offence she allegedly committed between February 20, 2021 and January 20, 2022, thereby denying KRA Sh17.2 million.
Mr Thomas Githangi Kanyi also failed to appear in court, forcing the magistrate to issue a warrant for his arrest. Mr Kanyi is accused of failing to include his income, thereby occasioning a loss of Sh923,686 to the KRA.
The charge sheet further stated that in 2018, Mr Kanyi failed to include his income amounting to Sh45.8 million in the VAT returns, a move that led to the loss of Sh13.6 million to the commissioner of income tax. He was also accused of failure to register for VAT and remit Sh11 million.
Ms Anastasia Wangui Ng’ang’a, faces similar charges of failing to include her income in the VAT returns.
Others who failed to appear in court forcing the court to issue warrants for their arrests are Mr Douglas Kathurima Mwiti, Mr Saeed Sheikh Abdirahman, Sidoman Investments Limited, Christopher Odongo Asoka and his company Emergency Relief Supplies Limited, Ms Florence Wanjiku Muiruri, Mr Moses Boyi Odhiambo and Mr Daniel Ngugi.
The cases will be mentioned on July 2.
The trial of Naivasha senator Tabitha Karanja of Keroche Breweries Limited is ongoing before a Nairobi court, where the beer make is accused of failing to pay taxes amounting to Sh14.4 billion.
