A company and its director have been charged before Nakuru Law courts with offences relating to fraudulent under-declaration of an income of KShs.25, 464,424.

Josiah Macharia Kamau, the director of Mellabourne General Construction & Supplies Limited made an incorrect statement in the Company’s returns significantly reducing its tax liability by over KShs.9 Million. He pleaded not guilty before Hon. Isaac Orenge, Principal Magistrate and was granted a bond of KShs. 2,000,000 due to the severity of the offence. The case shall be mentioned on 22nd March, 2022.

Macharia was arrested following intense investigations by Kenya Revenue Authority intended to weed out non-compliant business enterprises. If convicted, Macharia shall be liable to a fine of KShs.10 Million or double the tax evaded, whichever is higher or imprisonment to a term not exceeding 5 years as provided for by the Tax Procedure Act No.29 of 2015.

In a separate case in Eldoret, Noah Kipsang Koech, a director and his company North- Rift Success Transporters Limited was charged before Eldoret Law Courts with offences relating to fraudulent evasion of payment of taxes of over KShs 1 million. Kipsang used fictitious invoices amounting to KShs.9,318,083 belonging to Baba Hardware and General Store Limited, which company was not in operation.

The accused person was arrested following an ongoing investigation exercise by Kenya Revenue Authority intended to weed out tax evaders. If convicted, Kipsang will be sentenced to a fine of KShs.10 million or double the tax evaded, whichever is higher or imprisonment to a term not exceeding 5 years as provided for by the Tax Procedure Act No. 29 of 2015.

KRA cautions tax evaders against such malpractices warning them that the elaborate systems in place will eventually segregate them from compliant taxpayers.

Commissioner, Investigations & Enforcement