County supplier charged with tax evasion amounting Sh 3 million

PRESS RELEASE 24/12/2020

A businessman who made supplies worth Kshs 65 million to Trans Nzoia County has been charged before Eldoret Senior Principal Magistrate Hon. Naomi Wairimu with tax fraud amounting to Kshs.3 million.


Joab Lumbasi Simiyu, director of Africonnect Limited, faced four counts of charges jointly with the company. He faced two counts of failure to pay VAT of Kshs 2.9 million and Kshs 155,000 for the years 2015 and 2016 respectively by due dates. He also faced two counts of failure to submit tax returns for the two years as required under Tax Procedures Act 2013.


The accused pleaded not guilty to all the charges and were released on a bond of Kshs.100, 000 with a surety of similar amount.


KRA tax assessments on the taxpayer-Africonnect Limited established that the company had been awarded a tender by Trans Nzoia County Government and paid monies in the sum of Kshs 65,000,000 for supply of two rotary drilling rigs each for Kshs 33,500,000. Africonnect Limited executed the tender and was paid but neither filed VAT returns nor paid tax due.


The case is set for hearing on 1st February 2021. For first two counts of failure to pay taxes, if the accused person is found guilty he shall be liable to pay a fine not exceeding Kshs 10,000,000 or double the tax evaded whichever is higher or to imprisonment for a term not exceeding 10 years, or to both.


For charges on failure to submit tax returns, the accused person if found guilty shall be liable to pay a fine not exceeding Kshs 1,000,000 and to imprisonment for a term not exceeding 3 years, or to both.

 

Commissioner, Investigations & Enforcement

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