KRA extends crackdown to car bazaars in hunt for tax evaders

KRA Commissioner General John Njiraini. /FILE
KRA Commissioner General John Njiraini. /FILE

The taxman has extended its crackdown on illegally imported vehicles to car bazaars at all major towns.

KRA said on Monday that a series of sting operations geared towards tracing motor vehicles that may have been previously marked as transit vehicles will be conducted.

A recall notice for 124 high-end motor vehicles suspected to have outstanding tax issues has been issued in this regard.

Many of the vehicles that include sports utility vehicles (SUVs) and related luxury units are part of an on-going investigation covering transit vehicles suspected to have been diverted to the local market.

The vehicles, some of which are destined to countries neighbouring Kenya, are feared to have been diverted into the country by unscrupulous traders.

In Nairobi, a KRA team successfully managed to comb through several car bazaars issuing seizure notices for units suspected to be non-compliant.

According to the notice, vehicle owners will be required to present their cars together with the original ownership transfer and importation documents.

The Commissioner of Investigation and Enforcement is expected to receive the vehicles on Tuesday morning at the Nairobi Railways Club for verification.

"Owners who will fail to voluntarily present the vehicles and the documents will face legal action in line with revenue laws," the statement said.

KRA Commissioner General John Njiraini, when commissioning the crackdown on Monday,

assured that the process will be undertaken humanely and advised the current owners to co-operate with the authority.

“We are conscious that some of these vehicles may have already been sold to innocent unsuspecting customers and we are asking them to cooperate with our officers in the ongoing investigations,” Njiraini said.

The authority suspects that unscrupulous importers have not been paying taxes on many high-end luxury vehicles imported from Britain, Japan and other European countries.

These are later sold to unsuspecting customers at car bazaars.

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