Nakuru, Eldoret traders in the soup over tax evasion
Josiah Macharia Kamau, the director of Mellabourne General Construction and Supplies Limited has been charged before Nakuru Court for underdeclaration of Kes25,464,424 income.
Mr Kamau made an incorrect statement in the company’s returns significantly reducing its tax liability by over Kes9 million, the taxman said in court papers.
Appearing before Principal Magistrate Isaac Orenge, Mr Kamau pleaded not guilty and was granted a bond of Kes2 million. The case shall be mentioned on March 22, this year.
The Kenya Revenue Authority has intensified crackdown on tax cheats and non-compliant businesses.
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If convicted, Mr Macharia shall be liable to a fine of Kes10 million or double the tax evaded, whichever is higher or imprisonment to a term not exceeding five years as provided for by the Tax Procedure Act No.29 of 2015.
Separately, Noah Kipsang Koech, a director at North- Rift Success Transporters Limited was charged before Eldoret Law Courts with offences relating to fraudulent evasion of payment of taxes of over Kes1 million.
In court papers, the taxman said Mr Kipsang used fictitious invoices amounting to Kes9,318,083 belonging to Baba Hardware and General Store Limited, a company that was not in operation.
If convicted, Mr Kipsang faces a similar fate as Mr Macharia of a fine of Kes10 million or double the tax evaded, whichever is higher or he'll be send behind bars for term not exceeding 5 years.