Businessman jailed for tax fraud over uncustomed vehicles

A Nairobi court has sentenced a businessman to two years in jail or a fine of Sh642,000 after convicting him of tax fraud totalling Sh1.3 million.

Gibson Mudachi Nyabera, owner of Chantrise Limited, was found guilty by the Milimani Court of acquiring uncustomed goods, an offence under the East Africa Community Customs Management Act, 2004.

Mudachi, whose trial began on Thursday, July 26, 2017, was accused of obtaining two Toyota Land Cruisers without paying customs duty.

The court heard that he acquired one vehicle on Wednesday, September 16, 2015, and another on Wednesday, June 8, 2016, with each having a duty value of Sh642,000.

At the same time, businessman Noor Hassan Abdullahi was charged with tax evasion amounting to Sh51,255,512.

Prosecutors said Hassan derived an income of Sh735,164,836 from 2018 to 2022 through the sale of cooking oil, flour and sugar but failed to declare the earnings for tax purposes.

Authorities also accused him of failing to register for VAT despite dealing in vatable goods, contrary to the Value Added Tax Act No. 35 of 2013.

Hassan denied the charges and was released on a bond of Sh1 million. The case will be heard on Tuesday, April 1.

If convicted, he faces a fine not exceeding Sh10 million or double the tax evaded, whichever is higher, or imprisonment for up to five years under the Tax Procedures Act.