KRA nabs two directors over Sh1.4 billion tax evasion

In Summary

• The two George Bhutto Abiga and Berard Ochieng Okello both directors of Olympus Computer Garage Limited are suspected to have deliberately failed to declare taxes due from sales they made to Mitsumi Computer Garage  between September 2014 and August 2016.

• Commissioner, Investigation & Enforcement David Yego in a statement to newsrooms said the duo instead filed nil returns for Corporation Tax and did not disclose the business transactions.

An illustration of handcuffs
An illustration of handcuffs
Image: THE STAR

Kenya Revenue Authority detectives have arrested two directors of a computer company over tax evasion amounting to Sh1.4 billion.

The two - George Bhutto Abiga and Berard Ochieng Okello - both directors of Olympus Computer Garage Limited are suspected to have deliberately failed to declare taxes due from sales they made to Mitsumi Computer Garage  between September 2014 and August 2016.

Commissioner, Investigation & Enforcement David Yego in a statement to newsrooms on Wednesday said the duo instead filed nil returns for Corporation Tax and did not disclose the business transactions.

According to Yego, further investigations revealed that Olympus Computer Garage Limited had imported various computer gadgets and accessories such as laptops, flash drives which attract zero duty but are charged 16 per cent Value Added Tax (VAT) as well as Railway Development Levy (RDL), which they also failed to declare.

"The company equally failed to file Value Added Tax (VAT) for the year 2014 and instead filed NIL returns for the year 2015 and 2016 intentionally avoiding to declare sales of over One billion," he said in the statement.

Yego said the two will be arraigned in court on Friday.

"If found guilty, the suspects are likely to be fined an amount not exceeding Sh10 million or double the tax evaded, whichever is higher or to imprisonment for a term not exceeding three (3) years," he said.

Yego said the commission has noted that high valued goods are being brought into the country through Jomo Kenyatta International Airport (JKIA) by importers who under-declare their value hence paying less duty. 

"The Authority is keenly monitoring all imports through the JKIA and those found culpable will be prosecuted," he said.