The Kenya Revenue Authority (KRA) and the Director of Criminal Investigations (DCI) will on Friday charge a businessman with tax evasion related counts.
The suspect, Abdi Gedi Amin was arrested on Thursday in Mombasa for allegedly being involved in a massive tax evasion syndicate in excess of Sh1 billion.
He will face tax evasion related counts including failure to pay taxes, failure to file returns and giving false information that affects tax liability for both companies and himself.
The offences contravene Section 97(c) as read with Section 104(3) of the Tax Procedures Act 2015.
According to KRA, Abdi is alleged to have formed more than seven companies where he is either a director or used proxies to manage the companies including being bank signatories.
KRA says the companies have been trading as manufacturers, wholesalers and retailers in household commodities, for example, sugar, oils, general goods to transport services.
The companies are spread between Mombasa and Nairobi.
“The suspect spent his night at the police custody awaiting to take the plea. KRA is committed to facilitating taxpayers to pay and file their taxes as part of their civil duty toward making our country self-sustainable,” reads a statement from the Kenya Revenue Authority.
The Kenya Revenue Authority last month disclosed that it will prosecute 600 individuals this year for tax evasion related cases.
The Authority has also revealed that it prosecuted 222 individuals last year but the figure will go up in 2019 in a step that is also targeting to help the taxman boost its revenue collection.
“Last year we took to court 222 individuals, this year we have shifted our focus completely, we want to prosecute 600 individuals.
“We have shifted focus in 2019 and have watertight cases targeting up to 600 individuals, these are cases which are properly investigated and we are sure that we will get over 94 per cent success rate,” KRA said.
On prosecution, KRA recovered Sh12.6 billion from 210 tax evasion cases won while 222 suspects were persecuted at the law courts leading to the recovery of taxes amounting to Sh12.9 billion.