A businessman has been arrested and arraigned in a Mombasa Court by Kenya Revenue Authority (KRA) for fraudulent evasion of import duty worth 12.4 million shillings through undervaluation.
The accused, Robert Muthumbi Muriuki who was charged alongside his Landmark Concepts Company Limited was charged that on diverse dates between 12th October 2018 to 2nd November, 2019, in Mombasa county being the director of a limited liability company, presented to the commissioner an invoice number and import declaration form to indicate lower value of EUR 157,000 instead of the correct EUR 720,000 according to the actual Invoice and import declaration form hence failing to remit principal taxes amounting to 12,450,327.74 million shillings.
He denied committing the offence before Mombasa Magistrate Ms Rita Amwayi who released the accused person on a 1 million shillings bond with an alternative 200,000 shillings cash bail.
The pre-trial of the case was fixed on December, 6th, 2021.
According to investigations by the KRA Investigation and Enforcement department, the Company had imported a WATERMASTER CLASSIC IV DREDGER complete with accessories.
However, after in-depth post clearance analysis and investigations it was established that both the Invoice declaration form (IDF) document and the Invoice used during the declaration were falsified and presented to Customs Officers indicating the free on board price (FOB) of the Machine as EUR157, 500 while the value as per the actual invoice of the plant was established to be EUR 720,200.
KRA said that the efforts are meant to enable fair business environment and avoid undue fraudulent competition.
In the recent past, the revenue body has been conducting investigations, detecting tax evasion schemes, arresting the culprits and charge them before court.