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Two traders have been intercepted while trying to smuggle 6200 litres of ethanol while concealed in maize and wheat bran bags. Stephen Njuguna Kironji, owner of goods and Kenneth Karanja Kimaku who was the driver of a motor vehicle registration number KCG 865K. The driver was arrested on 13th June 2021 in Kinangop area along Nakuru Nairobi Highway and the owner was arrested at Mugumu Police Station where the vehicle was detained. The customs duty of the goods is Kshs 2,571,924. The 30 drums of ethanol were concealed inside their Isuzu lorry using 46 bags of maize and 37 bags of wheat bran which were neatly arranged at the rear and side doors. Before their arrest, the two failed to produce importation documents, a licence or registration by KRA, and which are a requirement to import excisable goods such as ethanol. The suspects were charged with three counts relating to tax evasion on Tuesday 15th June 2021 before Engineers Law Court Resident Magistrate Hon Rawlings Musiega. They faced charges of; fraudulent evasion of payment of duty, importation of Excisable goods without a licence or being registered and that of conveying uncustomed goods. The charges are offences under various sections of the East African Community and Customs Management Act 2004, the Excise Duty Act No 23 of 2015 and Excise Duty (Excisable Goods Management System Regulations 2017. They denied the charges and were released on a bond of Kshs 300,000 and a surety or a cash bail of Ksh 150,000 each. In order to import excisable goods such as ethanol into Kenya, importers are required to pay customs duty for the
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The Tax Appeals Tribunal (the Tribunal) has dismissed an Appeal filed by Jhulay LAL Commodities Ltd on grounds that the firm had failed to prove that Kenya Revenue Authority’s (KRA) assessment was excessive.Jhulay LAL’s principal activity is the wholesale and retail sale of rice sourced from Pakistan. Jhulay LAL Commodities Ltd appealed the decision of KRA contesting that the entire tax of Kshs. 1,456,433,604.00 demanded. The main grounds of the appeal was that the Commissioner determined the taxable income on the basis of its gross bankings against the basic accounting principles and tax law.KRA successfully argued that it made the assessment after an investigation revealed several irregularities including unexplained bank deposits and that the sales of the rice exceeded the amounts imported.The Tribunal reviewed the evidence as presented by both parties and held that KRA exercised its powers judiciously to make the decision based on the material before it. The Tribunal held that the Jhulay LAL Commodities Ltd failed to prove that the assessment was excessive and dismissed the appeal.
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Three businessmen have been charged before Busia Law courts Senior Principal Magistrate Hon. Phoebe Kulecho with counts relating to smuggling of 350 bags of maize worth Kshs 800,000 in taxes. Joseph Kiprono and Mugisha Moses were charged both jointly while Issa Abuneri Ingati separately faced similar charges of being in possession of uncustomed goods contrary to section 200(d)iii as read with section 210 and 211 of the EACCMA,2004 and that of conveying uncustomed goods contrary to section 199 (b) as read with section 199(c|) EACCMA,2004. Joseph and Mugisha were intercepted by Adungosi Police Station Officers while transporting 200 bags of uncustomed maize worth Kshs 460,000 in taxes on 9th March this year at Among’ura- Amaase Murram road Teso South within Busia County. The accused persons denied the offences and were each released on bond of Kshs 200,000 or bail of Kshs 100,000. Their case will be heard on 6th May 2021 and mention on the 25th March 2021.
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