Car Dealer Loses Ksh 1.8B to KRA

  • Imported cars at the port of Mombasa await clearance.
    Imported cars at the port of Mombasa await clearance.
    File
  • A Pakistani car dealer based in Mombasa lost Ksh1.8 billion to the Kenya Revenue Authority (KRA) after three of his associates were found guilty of tax evasion.

    The tycoon, who has been dealing in the car business since 2013 was also charged along with the three employees whom he made directors of three companies linked to him. 

    A Mombasa Resident judge directed the suspects to pay tax as assessed by KRA and affirmed by the Tax Appeals Tribunals. 

    The judge added that KRA had proven beyond doubt that the accused owed it Ksh1.8 billion. 

    An empty court room.
    An empty court room.
    File

    "Therefore, the companies and its directors cannot have it both ways. With the judgement of the Tax Appeals Tribunal already out, and in the absence of any appeal or stay of that judgement the companies have no option but to comply.

    "There are no further doubts about the amount of tax due.  Therefore, the Ex parte Applicants cannot have it both ways," the judge ruled. 

    In October 2020, the judge had protected the suspects from criminal charges pending a hearing by the court. In his latest ruling, he lifted the order stopping the parties from being prosecuted. 

    The accused will face criminal charges and will be arraigned in a court of law, later on, when the court declares a hearing date. 

    "The Ex parte Applicants together with their directors, shareholders and employees face prosecution," the judge declared.

    Prior to the magistrate's ruling, a Tax Tribunal had found the accused guilty of tax fraud.  

    The Mombasa businessman has been out on a Ksh10 million bond with similar sureties after he was arrested in 2020 over tax evasion

    Motorists on a Colossal Traffic Jam Along Busy Uhuru Highway in Nairobi
    Traffic jam witnessed along busy Uhuru Highway in Nairobi in 2019
    Simon Kiragu
    Kenyans.co.ke
    criminal arrest suspect tax evasion