Kenya tightens noose on tax evaders


Mombasa seaport, Kenya

from MARIA MACHARIA in Nairobi, Kenya
NAIROBI, (CAJ News) THE Kenya Revenue Authority (KRA) is cracking down on perpetrators of a tax evasion scheme on non-payment of export duties on locally sourced raw hides and skins.

This has led to the seizure of 25 containers of hides and skins at the Port of Mombasa.

These would have led to the government loosing approximately KSh75 million (US$681 778) in export duty.

The intercepted consignment was among 50 containers of hides and skins that had been set aside for 100 percent verification on suspicion of being mis-declared as other goods to evade the payment of export duties.

The scheme involves stuffing/loading containers with raw hides and skins meant for export from local go-downs in absence of customs officers which is contrary to customs law on exports.

Thereafter export declarations are made in customs systems with false information on description of goods, local exporter, country of destination and weight.

“It is worth to note that, the goods declared in customs export documents are disguised as those that are exempted from export duties,” said Edward Karanja, KRA Commissioner, Investigation and Enforcement Department.

Further, in the course of investigations, KRA received a tipoff that the involved merchants were in the process of disrupting and scuttling the ongoing investigations by offering bribes.

KRA jointly with EACC laid a trap and were able to arrest three suspects who had offered a bribe of KSh700 000.

Karanja said KRA was determined to ensure there is a fair playing ground for legitimate business to thrive and the public is encouraged to undertake legitimate and clean business.

“KRA has an elaborate intelligence network to detect, disrupt and deter such tax evasion schemes to create a level playing field for all,” he said.

– CAJ News





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