Businessman Gibson Mudachi Nyabera and owner of Chantrise Limited was sentenced to serve two years in jail with an alternative 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) which is an offence under East Africa Community Customs Management Act,2004.
The convict acquired two Toyota Land Cruisers, one on 16th September, 2015 and another on 8th June 2016, that were both uncustomed and each with a duty value of KShs.642,000.
Meanwhile, businessman Noor Hassan was charged for tax evasion amounting to KShs.51,255,512.
Noor Hassan Abdullahi had derived an income of KShs.735,164,836 between 2018 and 2022 from sale of cooking oil, flour and sugar. He however failed to declare the income for tax purposes.
Furthermore, despite dealing in vatable goods Noor Hassan failed to register for VAT obligation 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 5 years as per the provisions of the Tax Procedures Act.
The government is commitment to enforcing tax compliance and holding individuals accountable for tax evasion offences. The sentencing is expected to set a strong precedent for similar offences.
