The Director of Public Prosecutions (DPP) has approved prosecutions against individuals and companies evading tax compliance through false pretense.
The DPP highlighted cases of individuals who failed to include their income while filing returns, and others who made false entries, leading to huge losses for the Commissioner of income tax.
Further, the DPP stated that the accused, who appeared before court, will be prosecuted and punished in accordance with the law.
“The above individuals will face three (3) counts of offences arising from the East African Community Customs Management Act, 2004
“Before making the above decisions (1-6), the DPP was satisfied that all alternatives to prosecutions had been explored. The DPP wishes to assure the Public and taxpayers that all enforcement measures undertaken shall continue to be humane and just,” the statement read in part.
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Cases Highlighted by DPP
Benson otieno Kisero, Eunice Opili Likuyani and Wise Pick Trading Limited will face three (3) counts of fraud.
Benson is accused of filing false purchases amounting to Ksh11,873,000 thereby reducing his Value Added Tax (VAT) liability by Ksh1,899,680 while Eunice is accused of filling fake purchases amounting to Ksh357,003,185 thereby reducing the VAT liability by Ksh57,088,510;
On the other hand, DPP accused Wise Pick Limited for filing fake purchases amounting to Ksh281,845,744 thereby reducing the VAT liability by Ksh45,095,281.
At the same time, Thomas Githangi Kanyi was accused of failing to include income earned and failing to pay Value Added Tax (VAT).
“In the year of income 2016, failed to include his income amounting to Ksh8,966,990 and thereby occasioning a loss of Ksh923,686 to the Commissioner of Income Tax,
“In the year of income 2017 failed to include his income amounting to Ksh2,556,034 and thereby occasioning a loss of Ksh686,697 to the Commissioner of Income Tax,” explained the statement.
The cases highlighted dated back to 2017, with some individuals and company facing up to seven counts of fraud.
Also, some accused persons will be charged for using Kenya Revenue Authority (KRA) pins belonging to other taxpayers.
Also Read: KRA Given One Month Ultimatum to Share Details of Investors Enjoying Tax-Free Deals
KRA Making Losses on Uncollected Tax
On May 7, Principal Secretary (PS) State Department for Investment Promotion Abubakar Hassan Abubakar revealed that there might be some loopholes exploited by some companies to evade tax.
However, he said that the government was working with KRA to explore legislative interventions that may be required to tighten the regulatory framework.
The sentiments followed a report by the auditor general which revealed that KRA was facing growing revenue shortage and potentially losing about Ksh1.7 trillion in contentious and uncollected taxes.
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