TAX FRAUD

Construction firm director charged with Sh173m tax fraud

In Summary

• The suspect was accused of making incorrect statements in his Value Added Tax returns.

• The suspect denied all the charges.

A director of Hanamal Constructions Limited Hassan Ahmednur Baricha was on Monday charged with tax fraud
A director of Hanamal Constructions Limited Hassan Ahmednur Baricha was on Monday charged with tax fraud
Image: COURTESY

A director of Hanamal Constructions Limited was on Monday charged with tax fraud amounting to Sh173 million.

Appearing before Milimani magistrate Peter Ooko, Hassan Ahmednur was charged with  five counts of falsifying statements to lower the tax liability payable to the Commissioner for Domestic Taxes.

In a statement by KRA investigation commisioner David Yego,the suspect  made incorrect statements in Income Tax returns for the year 2015 and reduced the Corporate Tax Liability by Sh4,944,163.

"Secondly, he unlawfully made incorrect statements in his Income Tax return for the year 2016, which reduced his Corporate Tax Liability by Sh20,817,971," reads the statement.

On the third count, Ahmednur was charged with unlawfully making incorrect statements in the Income Tax return for the year 2017, reducing the company’s Corporate Tax Liability by Sh24,106,797.

 Ahmednur on the fourth count made incorrect statements in the Income Tax return for the year 2015, 2016 and 2017 that reduced his Income Tax liability by Sh57,538,801.

Lastly, the suspect was accused of making incorrect statements in his Value Added Tax returns (VAT) in 2015, 2016, and 2017 thereby reducing his VAT liability by Sh65,651,535.

The suspect denied all the charges and the ruling on his bond and bail terms will be heard on Tuesday.

Meanwhile, two people were on  last Friday charged before Kisumu magistrate, Fatuma Rashid, for knowingly evading to pay taxes worth Sh1, 559,704.06.

Elizabeth Wairimu and Benedict Wamukota, a clearing agent, had imported goods but did not pay the due taxes.

The goods were suspected to have been smuggled from Uganda and were being transported to Kamukunji area in Nairobi.

The truck that was transporting the consignment was intercepted by KRA officers and other multi-agency team members along Daraja Mbili, Busia Road.