Three corporate directors are wanted by a Nairobi court on charges of participating in the VAT missing trader tax evasion scam.
The failure to show up in court led to the issuance of the warrants.
On Wednesday, Chief Anti-Corruption Magistrate Thomas Nzyuki issued arrest warrants for Jemimhah Nasiche Mukungu, a director of Priteria Limited, and Benson Otieno Kisero and Eunice Opili Likuyani, directors of Wise Pick Trading Limited.
They were charged individually with tax fraud offenses in violation of Section 97(c) read in conjunction with Section 104(3) of the Tax Procedures Act of 2015.
The Commissioner of Investigations & Enforcement Department informed the court that after thorough investigation, it was determined that the companies were involved in a tax fraud scheme nicknamed “Missing Trader.”
This entails creating fake invoices in order to represent a real business transaction when none actually occur.
The entities faced accusations of imitating authentic trading, which necessitates a matching purchase for each transaction, as a trader cannot pretend to sell something they haven’t bought.
According to KRA, the two companies’ purchase declarations were found to be fraudulent because the supposed suppliers distanced themselves from the related transactions.
The Commissioner informed the court that they had discovered that Priteria Limited and Wise Pick Trading Limited had conspired to use a fraudulent scheme to lower their tax obligations by Kshs. 24,694,188 and Kshs. 104,083,479, respectively.
Thomas Githangi Kanyi was also accused in the same court with tax evasion through under-declaration of income, and an arrest warrant was issued for him.
According to investigations, the taxpayer concealed income totaling Sh75,584,812/-between 2016 and 2019, which reduced his tax obligation by Sh20,652,670.
The aforementioned trader is also charged with neglecting to register for VAT even after reaching the Sh5,000,000 registration barrier, resulting in a Sh11,257,559 VAT loss.
In the meantime, Michael Wafula Obunde, Jesse Michael Muganda, and Clifford Otieno of Geo Freight Forwarders Ltd. were granted a Sh200,000 bond and denied allegations that they made fraudulent customs entries using a KRA PIN belonging to Di Lorenzo Limited.
Joseph Ndungu Guchecha, Edwin Wanjala Barasa, Ramadhan Kariuki Gitau, and Francis Kyalo Mwandandu also appeared in court, however they all refuted allegations that they had stolen 38 tonnes of milk powder that was condemned.
Annastasia Wangui Ng’ang’a, who was accused of evading tax by evading both income and VAT between 2016 and 2019, Douglas Kathurima Mwiti, Saeed Sheikh Abdirahman, Sidoman Investments Limited, Christopher Odongo Asoka and his company Emergency Relief Supplies Limited, Florence Wanjiku Muiruri, Moses Boyi Odhiambo, and Daniel Ngugi are among the other individuals who did not show up in court for tax evasion charges.
