Scrap metal dealer charged with tax evasion

Kenya Revenue Authority Senior Assistant Commissioner Enforcement Port Operations officer Benson Kisilu (left) and a port worker verify scrap metals in one of the four 20ft containers at the port of Mombasa. 

A scrap metal dealer has been charged with denying the government Sh155 million revenue by evading payment of taxes.

Mr Habib Ahmed is said to have made sales worth Sh337.9 million between 2016 and 2018 but failed to declare and pay requisite income tax from the proceeds.

Through his company Masuti Enterprises Ltd, the dealer is also accused of failing to file tax return over the same period. 

The charge sheet reads that on diverse dates between June 30, 2016 and June 30, 2018, being the director of the company, he failed to pay to the Commissioner of Domestic Taxes, income tax for the company worth Sh155.5 million arising from sale made in 2016 by the due date.

Mr Ahmed denied committing the offence when he appeared before Mombasa Chief Magistrate Martha Mutuku. 

The court heard that the suspect committed this offence jointly with others who are yet to be arrested. 

The offence attracts a fine not exceeding Sh10 million or double the tax evaded , whichever is higher or to imprisonment for a term not exceeding 10 years or both.

Mr Ahmed was released on a Sh2million bond with one surety of a similar amount. He was given an alternative cash bail of Sh1 million.

The case will be mentioned on July 12.



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