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Businessman charged with tax evasion on maize importation

[A photo of Taita Taveta law court. Photo/Courtesy].

A businessman was on Wednesday arraigned in a Taveta court and charged with making false and incorrect declarations relating to importation of maize from Tanzania.

Investigations conducted by the Kenya Revenue Authority (KRA) on the compliance status of maize importers in Kenya in 2020, revealed that Wilson Kiplagat Chesang imported maize with a total Customs value of Ksh527,911,833 between the year 2014 and 2019, yet he was filing nil returns.

Further, it was discovered that Chesang posed as an importer in 102 Customs entries on behalf of the real importers. According to KRA investigators, this is a tactic used by importers in order to evade accounting for the imports and payment of taxes from proceeds of such imports since their names do not appear in the Customs entries as importers.

Chesang pleaded not guilty before Taveta Resident Magistrate Ms Louser Adisa Chebeni.

He was freed on a Ksh1 million bond with a surety of a similar amount or an alternative cash bail of Ksh500,000.

The case will be mentioned on February, 28th, 2022.

According to the tax regulatory body, making or causing to be made a declaration which is false or incorrect in any particular, is an offence under Section 203 of the East African Community Customs Management Act, 2004.

A person who commits such an offence is liable for conviction to imprisonment for a term not exceeding three years or to a fine not exceeding Ksh1.12 million.