The Kenya Revenue Authority (KRA) has warned businesses and taxpayers against tax evasion as it intensifies a nationwide crackdown on schemes that cost the government millions in lost revenue.

🇰🇪 Breaking It Down

The warning came after KRA officers seized more than 55,000 smartphones at Eldoret International Airport on Tuesday, September 22, averting an estimated Ksh21.5 million tax loss.

The consignment was initially declared as containing only 3,000 smartphones, shoes, automotive spare parts, household goods, electronic accessories and other assorted cargo under five Customs entries.

However, verification found 55,607 ordinary smartphones, while an additional 309 high-end smartphones were found without any declaration, exposing the extent of the alleged tax evasion.

📌 What You Need to Know

"The intelligence received indicated that the consignment contained unmanifested mobile phones and other high-end electronic goods," the KRA enforcement officers revealed.

The Authority said the consignment was goods that were either under-declared or not declared at all, violating Section 203 of the East African Community Customs Management Act (EACCMA), 2004.

The Act provides that a person who makes a false Customs entry or participates in tax evasion commits an offence and may face imprisonment for up to three years or a fine of up to Ksh1.2 million.

“We are actively working to uncover tax evasion schemes, improve compliance with tax laws and procedures, and promote fair trade in the market," the Authority stated.

"KRA is appealing to members of the public, taxpayers and businesses with information concerning persons, companies or networks involved in the generation, sale, purchase or use of fictitious VAT invoices to come forward and share such information," the Authority said.

The latest incident came just five days after KRA intercepted a bus carrying cigarettes, tobacco and powdered milk worth Ksh46.7 million in an intelligence-led operation along the Uganda-Kenya route.

📰 Source: Kenyans.co.ke