Eldoret court frees four on bail in sh446,000 tax evasion case involving illegal alcohol
Four people were yesterday released on a Sh100, 000 cash bail after they were charged at Eldoret Court Law Court for alleged illegal possession of ethanol, cigarettes meant for export and alcoholic drinks affixed with counterfeit excise stamps.
Appearing before Senior Principal Magistrate Onkoba Mogire, the four including Jack Chirchir, Viola Chepngetich, Joseph Nganga and John Mwangi pleaded not guilty after they were jointly charged with counts of manufacturing excisable goods without a Licence and in possession of restricted, excisable and unaccustomed goods.
The four were found illegally manufacturing alcoholic products at Ngeria area within Uasin Gishu County.
The goods occasioned a duty loss of Sh446,456.
According to KRA, the accused persons reportedly contravened the provisions of the East Africa Community Customs Act, (EACCMA) 2004 and Excise Duty Act,2017.
The case is scheduled for mention later next week.
Elsewhere, an Isiolo businessman Ibrahim Edi Abdi was yesterday charged at Merti Law Courts with smuggling mobile phones through the Moyale border from neighbouring Ethiopia.
Edi was arrested in October last year at Merti junction along Moyale-Isiolo highway by the Multi-Agency Team with eight mobile phones that had been smuggled into the country without declaring and payment of the requisite taxes.
He appeared before Magistrate Lucy Mutai Kathure where he was charged with an offence of acquiring unaccustomed goods contrary to section 200(d)(iii) and section 210© of the of the East Africa Community Customs Act, (EACCMA) 2004. Edi was travelling using a public transport bus when the Multi-Agency officers detected his tax evasion scheme that involved removing the gadgets from their original packaging to appear as used items, thereby concealing their true status.
Investigations established that this method reflects a wider smuggling trend, where small consignments of goods are hidden in luggage and parcels transported via public service vehicles, a tactic that makes detection difficult and causes significant revenue losses to the government.
KRA in collaboration with other Partner Government Agencies under the Multi-agency framework is actively dismantling the network involved in elaborate tax evasion schemes linked to smuggling of as ethanol, illegal distilleries, packaging and production of counterfeit excise stamps used in the second generation alcoholic brands as well as distributors of the products, which not only pose health risks but also promote unfair market competition and revenue loss.
Liquor manufactures are advised to obtain valid manufacturing licences while traders and transporters should deal with licensed manufacturers and approved distributors and maintain all the relevant documentation to avoid arrests, seizures and prosecution for tax evasion.
