Businessman Gibson Mudachi Nyabera, owner of Chantrise Limited, was today sentenced to serve two years in jail or pay a fine of Kshs. 642,000 after Milimani Court Principal Magistrate Hon. Ben Mark Ekhubi found him guilty on two counts of tax fraud totalling Kshs. 1.3 million.
Mudachi, whose trial began on 26th July 2017, was charged with two counts of acquiring uncustomed goods (two motor vehicles), an offence under the East African Community Customs Management Act, 2004.
Kenya Revenue Authority says the convict acquired two Toyota Land Cruisers, one on 16th September 2015 and another on 8th June 2016, both of which were uncustomed, with each having a duty value of KShs. 642,000.
Meanwhile, businessman Noor Hassan was charged with tax evasion amounting to Kshs. 51,255,512.
Noor Hassan Abdullahi is said to have derived an income of KShs. 735,164,836 between 2018 and 2022 from the sale of cooking oil, flour, and sugar. However, he failed to declare this income for tax purposes. Furthermore, despite dealing in vatable goods, Noor Hassan failed to register for VAT obligations as required under the Value Added Tax Act No. 35 of 2013.
Noor Hassan denied all the charges and was granted a bond of Kshs. 1 million. The case is slated for hearing on 1st April 2025.
If convicted, the accused will be liable to a fine not exceeding KShs. 10 million or double the tax evaded, whichever is higher, or imprisonment for a term not exceeding five years as per the provisions of the Tax Procedures Act.
“The government is committed to enforcing tax compliance and holding individuals accountable for tax evasion offences. The sentencing is expected to set a strong precedent for similar offences,” KRA said after the ruling
