Two directors from companies based in Mombasa have been charged in court with taxation fraud.
Hussein Omar and Suleiman Chengu are facing various charges including the reduction of tax liability totalling Sh7.9 million.
They allegedly made unlawful claims of tax refunds for the companies they manage resulting to reduction of their company’s tax liabilities payable to the commissioner of domestic taxes, an act that reduced its tax liability.
Omar, director at Lensky trading company limited, is facing charges of unlawfully claiming a relief through the VAT returns between June and September 2019, thereby reducing tax liability with Sh5.7 million.He committed the tax offences between the months of June and October.
His counterpart Chengu who is a director of Qwali group limited is being accused of making the claims of VAT refunds totalling Sh2.2 million.
The accused, jointly with others yet to be arraigned in court are alleged to have committed the crimes on different dates between the months ofSeptember and October.
KRA told the court that Qwali Group Limited and Lensky trading company limited fraudulently inflated buying prices from suppliers Ahmed Isaak Hardware Ltd, Karsan Ramji & Sons Ltd and Associated Steel Ltd to reduce tax liability.
The taxmantold the court that preliminary investigations found that the alleged suppliers refused to have any business transactions with the two companies and revealed that the dealings were not ‘straight’ and with intentions of evading tax.
