A director of a scrap metal firm was on Monday charged in a Mombasa court with tax evasion amounting to Sh155, 471,597.
The accused, Habib Ahmed, was charged alongside his firm, Masuti Enterprises Limited.
Ahmed and the company were charged that on diverse dates between June 30, 2016, and June 30, 2018, within Kenya, jointly with others not in court they failed to pay to the Commissioner of Domestic Taxes, income tax for the company.
The accused, who was arraigned before Mombasa chief magistrate Martha Mutuku, denied committing the offense and was released on a cash bail of Sh1 million with an alternative of Sh2 million surety bond.
The company was investigated by Kenya Revenue Authority after being profiled as one of the companies that deal in the sale of scrap metals.
KRA's investigation established that the company made sales amounting to Sh337, 981,732 between 2016 to 2018, but never declared income or paid income tax from sales proceeds.
The company has never filed income tax returns and only declared sales for Value Added Tax for three months in 2016.
Furthermore, the taxman established that the company did not submit any VAT returns or taxes for 2017 and 2018.
This non-compliance by the company and its director led to evasion of paying taxes amounting to Sh155, 704,996 comprising Sh101, 394,520 and Sh41, 860,686 for income tax and VAT respectively.
The matter will be mentioned on July 12.
(Edited by Tabnacha O)
