Two company directors have been charged with several counts of tax fraud amounting to KShs 15 million at the Mombasa Law Court.
The directors of Hakurute Agency Ltd, Shehe Akare Bonaya and Mohamed Buya Yusa, were charged before Senior Resident Magistrate Hon. Gladys Olimo.
The two failed to comply with provisions of the Tax Procedures Act No. 29 Of 2015, which include payment of taxes despite having been actively trading and deriving income amounting to KShs. 15,485,348. They also failed to register for VAT obligation and was engaged in business that attract the VAT as well as failure to file tax returns for years 2018 to 2022. Taxpayers are obligated under the law to declare their accurate income to the Commissioner.
KRA investigations revealed that the company derived a total income of KShs. 63,791,266 between 2018 and 2022 and hence was liable to pay a total of KShs. 15,485,348 in both income tax and VAT.
For example, the company derived income of KShs. 18,072,441 in 2020 and tax implication of KShs. 5,421, 732 but neither paid nor submitted tax returns for that year.
They both denied the charges and were released on a bond of KShs. 300,000/. The two cases will be mentioned on 8th January, 2025
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