2 IT firm directors arrested as Sh273mn tax avoidance scheme exposedOctober 16, 2019
NAIROBI, Kenya, Oct 16 – Two directors of Microbit Systems Limited are awaiting trial after being arrested over tax avoidance.
Ali Hassan Apei and Bashir Hassan Abbey Mamo are accused of evading remitting their dues amounting to of Sh273 million for a period of 5 years.
“Both directors of Microbit Systems Limited have been arrested for not paying thir taxes from 2013 to 2017,” said Kenya Revenue Authority (KRA) Commissioner for Investigation and Enforcement David Yego.
Two directors were being held at the Capitol Hill on Wednesday ahead of arraignment in court later in the day.
Microbit Systems Limited according to a KRA intelligence report benefited from tender proceeds from county governments and government ministries.
These include Mandera and Marsabit county governments, State Department for Special Programs, State Department for Basic Education, State Department of Devolution and Ministry of Interior & Coordination and failed to remit taxes due from the payments of tenders given.
The tax agency also arrested a director at Simptons East Africa Holdings Limited, Simon Odhiambo Adalla, a clearing agent for using wrong trade tariffs (customs duty rates).
Using Simptons East Africa Holdings Limited, the suspect fraudulently evaded duty amounting to Sh3 million by using an incorrect customs duty rate of 10 per cent instead of the applicable 25 per cent in respect of the motor vehicles imported under various customs entries.
Adalla will be arraigned at the Chief Magistrate’s Court in Mombasa on Wednesday, Wednesday, October 16.