Clearing agent charged with Sh97m tax fraud

Companies

Monday, January 7, 2019 21:10

By GALGALLO FAYO

A clearing agent who had been contracted by the Seventh Day Adventist (SDA) church to clear an assortment of items has been charged in court for allegedly defrauding the Kenya Revenue Authority (KRA) of millions in tax by making multiple false custom entries.

Dickson Ogola is accused of manipulating invoices for custom entries leading to a loss of import duty of Sh97 million.

KRA in a statement said Mr Ogola was arrested on Saturday after evading investigators’ net for five months.

“Between January 2012 and August 2018 within the republic of Kenya…knowingly concerned yourself with the fraudulent evasion of payment of duty by manipulating invoices for 66 customs entries thereby occasioning a loss of import duty of Sh60, 346,144 payable to the commissioner of customs and boarder control,” reads one of the offences listed on the charge sheet.

He denied all 12 counts relating to tax evasion when he was arraigned before Milimani Principal Magistrate Kennedy Cheruiyot.

Mr Ogola was released on Sh500,000 cash bail or Sh1 million bond with a surety of a similar amount. The suspect who is alleged to run a non-licensed clearing and forwarding company is accused of using multiple clearing and forwarding firms to clear goods on behalf of SDA church.

Mr Ogola between 2012 to 2018 allegedly made 15 false customs entries using a PIN number belonging to Cargo News Express Limited, defrauding the taxman of Sh18.7 million. Over the same period he allegedly used another firm known as Airwagon Cargo Movers Limited to make 16 false custom declarations that KRA says cost it Sh24.6 million.

The accused is also said to have used Dume General Agencies Limited to make five false declarations, defrauding KRA of Sh2.1 million. Other firms Mr Ogola is alleged to have used to make false entries are Vector One Logistics Limited, Timson Logistics Limited, Mwando logistics, Key Naut Logistics Limited, Papwell Enterprises Limited, Freight Care logistics Limited and Fleet Freighters Limited.

The case has been listed for hearing on January 30.

KRA in the statement noted that it is committed in schemes aimed at evading payment of tax.