This archive report was first published on 27 August 2019.
On August 27, 2019, the Kenya Revenue Authority (KRA) charged Chinese mobile phone maker X-Tigi with $1.94 million in tax evasion in Kenya.
X-Tigi, with sales operations in several African countries, has been accused of failing to declare and remit taxes for a period of eight months. The company's director, Mr. Gao Fei, was charged with three counts of failure to submit tax returns and pay taxes amounting to Kshs. 194 Million.
Mr. Fei, a Chinese national, denied the charges before Senior Resident Magistrate Caroline Nzibe at the Milimani Law Courts in Nairobi, Kenya. He was released on a cash bail of Kenya shillings one hundred and fifty thousand (Kshs. 150,000/=) with a Kenyan surety of one million bond and ordered to deposit his passport in court.
According to the KRA, X-Tigi has been operating in Kenya for a while, dealing with both wholesale and distribution of Chinese mobile phones, chargers, phone covers, earphones, and other allied accessories. The company has been accused of not declaring taxes as required by law and transferring cash from its bank accounts in Kenya to Hong Kong as profit repatriation.
As early as September 2016, the KRA had wanted the accounts of the firm frozen as it was allegedly not paying tax on its imported products into the country. The director was also accused of transferring cash from his four bank accounts in Kenya to Hong Kong as profit repatriation from the country.
Mr. Fei, as the company representative, was charged with failing to pay Kshs. 194,357,743 in taxes and failing to file returns for 2015 and 2016 Financial Years as required under Tax Procedures Act, 2015.
