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Court summons MCA over KSh 8.7M tax fraud

A Mombasa Law Court has summoned Kinakomba Ward MCA Babusa Hamid Salim over tax fraud charges.

Babusa Hamid Salim through his company Darweish Constructors Limited, is accused of six counts of tax fraud and failure to pay income and value-added taxes amounting to KSh 8,697,748 despite deriving income from supplies worth KSh 21 million to the County Government of Tana River.

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Among the offences is failure to pay corporation tax amounting to KSh 491,379 in 2020, KSh 3,631,113 in 2021, and KSh 1,565,976 in 2022 contrary to section 95 read with section 104 (1) of the Tax Procedures Act.

Other offences include fraud concerning tax by omission from VAT returns of KSh 237,500 in 2020, KSh 1,936,593 in 2021 and KSh 835,187 in 2022 contrary to Sections 97 (a) and 104 (3) of the Tax Procedures Act.

The accused is set to appear on 18th April 2024 before Principal Magistrate Hon. David Odhiambo.

This is the second case of tax fraud to be flagged by the Kenya Revenue Authority after the directors of Bendegwa Limited were charged with failure to pay KSh 3,769,984 after trading with the County Government of Tana River.

Bendegwa Limited supplied goods worth KSh 8,339,400 to the County Government of Tana River on different dates between 1st January 2017 and 31st August 2023.

The company’s two directors Imani Sango Mponoa and Vilimine Nababe Moses have also been summoned to appear on 15th April 2024 before Mombasa Senior Resident Magistrate Rita Orora.

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