, MOMBASA, Kenya Jan 31 – A businessman, of Italian origin, dealing in construction material was on Friday charged in Mombasa with inflating purchases by Sh79,312,856 million to evade taxes amounting to over Sh20 million.
The trader, Tony Rosafio and his firm Smoky Hill Limited, in which he is a director, was arraigned before Mombasa Chief Magistrate Edna Nyaloti.
They all faced five counts of making an incorrect statement to defraud the government of tax revenue.
The court heard that between July 2015 and December 2019 at Kilifi County within the republic of Kenya Rosafio, jointly with others not before court, knowingly made incorrect statements to the Commissioner of Domestic taxes in the company’s Value Added Tax (VAT) returns, by claiming fictitious purchases amounting to a total of Sh79,312,856.
This enabled them reduce the company’s Value-Added Tax payable for the period by a total of Sh20,176,827.
The accused pleaded not guilty to the charge and the chief magistrate released him on a bond of Sh4 million, and an alternative cash bail of Sh1 million, with a Kenyan surety since he is a foreigner.
The court fixed the mention of the case on 18th February, 2020.
According to the prosecution, Smoky Hill Limited deliberately and knowingly failed to declare income earned and unjustifiably used fictitious invoices to defraud the government tax revenue.
Further, the company neither filed Income Tax Company Returns for the years of income 2015-2018 nor paid any corporation tax on the same.
KRA said it made several unsuccessful attempts to engage the company through its directors. This was after in-depth investigations carried out by KRA’s Investigation and Enforcement Department.
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