from MARIA MACHARIA in Nairobi, Kenya
NAIROBI, (CAJ News) – KENYA has intensified a crackdown against entrepreneurs and companies evading tax.
Two businessmen and their companies are the latest to be arraigned in court.
Josiah Macharia Kamau, the director of Mellabourne General Construction & Supplies, has been charged at the Nakuru Law courts with alleged offences relating to fraudulent under-declaration of an income of over KSh 25,46 million (US$223 235).
He pleaded not guilty before Principal Magistrate, Isaac Orenge.
The court has granted bail of KSh 2 million.
The case will resume on March 22.
Macharia was arrested following intense investigations by Kenya Revenue Authority (KRA) intended to weed out non-compliant business enterprises.
If convicted, he shall be liable to a fine of KSh10 million or double the tax evaded, whichever is higher or imprisonment to a term not exceeding five years as provided for by the Tax Procedure Act No.29 of 2015.
In a separate case in Eldoret, Noah Kipsang Koech, a director, and his company North- Rift Success Transporters was charged with offences relating to fraudulent evasion of payment of taxes of over KSh1 million.
Kipsang allegedly used fictitious invoices amounting to over KSh9,31 million belonging to Baba Hardware and General Store, a company not in operation.
If convicted, Kipsang will be sentenced to a fine of KS10 million or double the tax evaded, whichever is higher or imprisonment to a term not exceeding 5 years.
“KRA cautions tax evaders against such malpractices warning them that the elaborate systems in place will eventually segregate them from compliant taxpayers,” the agency stated.
– CAJ News