Hassan Ahmednur Baricha, a Director at Nairobi based Hanamal Constructions Limited was on Monday charged with tax fraud amounting to Kshs. 173 million.
Mr. Ahmednur was arraigned before Milimani Senior Principal Magistrate Hon. Peter Ooko with five counts of falsifying statements to lower the tax liability payable to the Commissioner for Domestic Taxes as required by the Income Tax Act.
On the first count, Mr Ahmednur, as the Director of Hanamal Construction Limited which is a limited liability company unlawfully made incorrect statements in Income Tax return for the year 2015 and reduced the Corporate Tax Liability by Kshs 4,944,163.
Secondly, he unlawfully made incorrect statements in his Income Tax return for the year 2016, which reduced his Corporate Tax Liability by Kshs 20,817,971. On the third count, the accused was charged with unlawfully making incorrect statements in the Income Tax return for the year 2017 reducing the Company’s Corporate Tax Liability by Kshs 24,106,797.
On the fourth and fifth count, Mr Ahmednur unlawfully made incorrect statements in the Income Tax return for the year 2015, 2016 and 2017 that reduced his Income Tax liability by Kshs 57,538,801 and he unlawfully made incorrect statements in his Value Added Tax returns (VAT) in 2015, 2016, and 2017 thereby reducing his VAT liability by Kshs 65,651,535 respectively.
The suspect denied all the charges and the ruling on his bond and bail terms will be heard today 15th October 2019. The prosecution was opposed to release of the accused person on bond for reasons that the accused is a flight risk, armed and had resisted arrest causing grievous body harm to the arresting officer.
The efforts to nab tax cheats by KRA is part of the taxman’s renewed war against tax crimes. Last month KRA revealed that only 8.3 percent of companies registered to remit corporation tax in the country in the period to June dispatched the levies to the body.
The taxman has on multiple occasions fell short on collecting revenue targets set by the National Treasury on the back of multiple tax defaulters and an incomprehensive tax base that fails to capture self-employed Kenyans and other citizens plying their trade in the informal sector. Despite raising concern on the compliance of paying taxes, KRA has not revealed measures that it would put in place to boost compliance levels.