TWO MOMBASA COUNTY KENYA BASED ENTREPRENEURS CHARGED WITH TAX EVASION AMOUNTING TO 162M

TWO MOMBASA COUNTY KENYA BASED ENTREPRENEURS CHARGED WITH TAX EVASION AMOUNTING TO 162M

By Grace Chege

Directors of two different companies were charged before Mombasa Chief Magistrate Ms Edna Nyaloti for fraudulently inflating the cost of purchasing supplies by Kshs.162 Million to reduce their tax liability.

The suspects, Mr Hussein Sheikh Omar of Lensk Trading Company Ltd and Mr Suleyman Mwalimu Chengo of Qwali Group Ltd, separately faced four and two counts respectively, for reducing their tax liability by a total of Kshs. 7,968,917.

Mr. Hussein Sheikh Omar and his firm Lensk Trading Company was charged with another not before court for unlawfully claiming VAT refunds/reliefs through their VAT returns for the months of June, July, August and September 2019.

This led to reduction of their tax liability by a total of Kshs.5,743,873.

On the other hand, Mr Suleyman Mwalimu Chengo and his company Qwali Group Limited were charged for reducing their tax liability by a total of Kshs 2,225, 044 by unlawfully claiming VAT refunds/reliefs through their VAT returns for the months of September and October 2019.

The accused persons allegedly fraudulently edited the amounts in the original cash sales receipts from the alleged suppliers to reflect high purchase amounts totalling Kshs.162M for purposes of reducing tax liability.

The alleged suppliers denied ever transacting with the suspects indicating that the transactions were fictitious and designed to evade payment of taxes.

They both pleaded not guilty and the court released Mr. Hussein on a surety bond of Kshs.5 Million with an alternative cash bail of Kshs2 Million, while Mr. Suleyman were released on a surety bond of Kshs2 Million and an alternative Kshs1 million cash bail.

The case will be mentioned on 10th December 2019.

The professional enablers providing tax advice and financial services for the companies are also being pursued as part of the wider investigations.