TAX FRAUD

Computer firm directors charged with Sh1.4bn tax fraud

In Summary

• In a statement by KRA investigation Commisioner David Yego,the offences were committed between the years 2014 and 2016.

•The Authority is keenly monitoring all imports through the JKIA and those found culpable will be prosecuted.

Bernard Ochieng Okello and George Bhutto Abiga at a Milimani law court on Friday, October 11, 2019.
Bernard Ochieng Okello and George Bhutto Abiga at a Milimani law court on Friday, October 11, 2019.
Image: COURTESY

Two directors of Olympus Computer Garage Limited were on Friday charged with 10 counts of tax evasion charges amounting to Sh1.4 billion.

Appearing before Milimani Court Chief Magistrate Francis Andayi, George Abiga and Bernard  Okello were charged with various counts including under-declaration of customs value of goods to reduce payable taxes and claiming tax relief through use of fictitious invoices.

Other counts include omitting taxable income from returns and failing to submit returns and failing to declare sales.

In a statement by KRA investigation commisioner David Yego, the offences were committed between the years 2014 and 2016.

"Other counts include omitting taxable income from returns and failing to submit returns and failing to declare sales. The offences were committed between the years 2014 and 2016," reads the statement.

The accused persons were arrested on October 9.

They denied all the charges and were each released on a bond of Sh5 million and alternative bail of Sh2 million.

The court is set to hear the case on November 6.

Meanwhile, the taxman 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 monitoring all imports through JKIA and those found culpable will be prosecuted.

Two people were also charged with illegal importation of ethanol worth Sh3 million before Milimani courts.

The suspects,  Edward  Njuguna and  Duncan Mutuma are accused of importing 42 drums of 250 litres and four jerrycans of 20 litres each of ethanol concealed and packed with maize and rice bran. 

They were also charged with conveying and being in possession of the unaccustomed goods within Kamandura area, Kiambu County on  September 30, 2019.

The suspects denied all the charges and were released on a bond of Sh1 million and alternative bail of Sh500,000.

The case is also set to be heard on November 6.

In 2015, the government introduced procedures to govern access, purchase and importation of ethanol to combat illicit production and consumption of spirit based beverages.

The procedures are based on provisions of Customs and Excise Act. The move took effect from September 1 , 2015.