This archive report was first published on 31 October 2019.
On Wednesday, six directors of a company dealing in boda boda trade in Marsabit county were arrested in connection with tax evasion.
According to the Kenya Revenue Authority (KRA), the six directors of Northern Auto Dealers Limited had failed to remit tax amounting to Sh 698 million.
Between 2016 and 2019, the company made sales amounting to Sh 3,420,942,711, but failed to declare the income earned for the period, as stated by KRA.
The six directors, Ali Ibrahim, Hassannoor Adan Ali, Kose Isatu Hirbo, Ibrahim Worku Hirbo, Wako Bate Hirbo, and Abdullahi Mamo Jillo, were buying and selling motorcycles within Moyale town.
They are currently being held at Nyeri Police Station, awaiting to be charged.
Failure to declare taxable income is a tax fraud under section 97 (a) as read with section 104 (3) of the Tax Procedures Act.
If convicted, the accused persons will be liable to pay a fine not exceeding Sh 10 million or a jail term not exceeding 10 years, or both.
