RELEASED ON SH10M BOND

Mombasa businessman charged with Sh96m tax evasion

Investigation establish that the company had imported goods valued at Sh304 million between 2018 and 2019

In Summary
  • Investigation of the allegation established that the company had imported goods valued at Sh304 million between the period 2018 and 2019.
  • The accused was charged alongside Hijaz Commodities Limited firm, the firm where he was a director.
Abdifatah Maalim Ali before Mombasa principal magistrate Martin Rabera
TAX EVASION RACKET Abdifatah Maalim Ali before Mombasa principal magistrate Martin Rabera
Image: LABAN WALLOGA

An entrepreneur dealing in the importation of edible oil and cereals was on Monday charged with multiple counts of evading income and value-added tax amounting to Sh96 million.

The accused, Abdifatah Maalim Ali, was arraigned before Mombasa principal magistrate Martin Rabera and charged with eight counts of tax evasion.

However, he denied the charges.

The accused was charged alongside Hijaz Commodities Limited, the firm where he was a director. The company deals in the importation and sale of edible oil, rice and wheat.

He was released on a bond of Sh10 million or with an alternative bail of Sh5 million. 

According to court documents, on June 30, 2019, the accused together with others not in court, jointly failed to pay domestic taxes and income tax for the Hijaz Company amounting to Sh37,636,133. 

This is after the accused's company made sales amounting to Sh9,344,233 in the incomes of 2018 and 2019.

The accused was also charged that on diverse dates between February 20, 2018, and December 20, 2018, jointly with others not before court failed to pay domestic taxes, value-added tax amounting to Sh46,969,196 arising from the income from January 2018, to November 1. 

He also failed to pay domestic taxes and value-added tax amounting to Sh2, 745,757 arising from the income made from January 2019 to November.

Ali faced another count where, without any reasonable cause failed to submit tax returns and knowingly made an incorrect statement to the commissioner of domestic taxes.

According to the Kenya Revenue Authority investigation and enforcement department, on October 30, 2020, KRA received intelligence that Hijaz Commodities Limited were not declaring or paying any taxes despite making huge imports and sales. 

Investigation of the allegation established that the company had imported goods valued at Sh304 million between 2018 and 2019.

Regardless, the accused did not declare his income or paid taxes from sales proceeds.

The authority maintains the company never filed income tax returns and submitted nil returns for VAT despite dealing in taxable supplies.

The case will come up for hearing on July 1.

(Edited by Tabnacha O)

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