Kenya Revenue Authority (KRA) has arrested six directors of Clearing and Forwarding firms for tax evasion.
Investigation and Enforcement Department Commissioner David Yego said the culprits who have been evading payment of duty through tariff misclassification and under valuation of motor vehicles will be arraigned at the Chief Magistrate’s Court in Mombasa Friday.
Yego said the suspects are directors of clearing agent companies-Evescon Global Logistics Limited, Fleet Freighters Limited, Rank Network Logistics Limited, S and L Port Solutions Limited, Sahara International Logistics Limited and second hand motor vehicle importation company Manjok International Limited.
“The vehicles were declared using HS tariff code 8704.90.00, which attracts import duty at 10% instead of 8704.2190 or 87043190 for diesel and petrol run vehicles respectively which attract 25% import duty,” stated the press sent to newsrooms Friday.
Yego further noted that in total, the second-hand motor vehicle company Manjok International Limited had for the period 2016 to September, 2019, made a declaration of 87 vehicles under the wrong tariff code and in-process evaded payment of Shs. 53,878,677 in taxes.
“The arrests followed lengthy investigations carried out by KRA’s Investigation and Enforcement Department, supported by the Revenue Protection Services (Directorate of Criminal Investigations),”said Yego.
Yego observed that during investigations, it emerged that despite the Commissioner of Customs and Border Control (C&BC) advising importers to pay duty directly to KRA, Manjok International had entrusted a broker -Mr. Dennis Bundi Muchira with their money to pay taxes due on their importations.
On his part Mr Bundi would pay less taxes and submit fake documents to the importer to account for the money received from the importers.
He is currently on the run and being sought by police.