- The Kenya Revenue Authority (KRA) has emerged victorious in a missing trader VAT fraud case involving a Chinese company, securing a win of KES 1 billion.
- The Chinese firm, China Communications Construction Company Ltd, was found to have fraudulently evaded over KES 1 billion in taxes by transferring funds through shell companies to accounts in China.
- The case involved a tax evasion scheme known as ‘missing trader,’ which was exposed during an appeal filed by the company at the Tax Appeals Tribunal (TAT) to challenge a tax assessment of KES 1,047,557,661.
- KRA’s investigations revealed that the Chinese firm engaged in complex tax evasion, including claiming inflated input VAT for purchases that were not incurred or related to genuine business activities, using fictitious invoices from fraudulently registered and non-existent companies.
- The TAT upheld the assessment and dismissed the appeal, confirming KRA’s findings and highlighting the elaborate tax avoidance scheme employed by the Chinese company.
Source Orbitax
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