KRA nabs 7 containers, suspends officers in tax evasion scheme

What you need to know:

A risk profiling through the taxman’s Simba system revealed that nine containers had been cleared for release before the vessel conveying them had even docked at the port.

The Kenya Revenue Authority (KRA) has suspended four Mombasa-based Customs officers for aiding tax evasion.

This was after the taxman seized seven containers that were being removed from the Kilindini port unprocedurally.

A risk profiling through the taxman’s Simba system revealed that nine containers had been cleared for release before the vessel conveying them had even docked at the port.

The four officers, attached to the Customs and Border Control department, are said to have un-procedurally released nine imported cargo containers before verification of contents and on a lower Customs tax assessment.

Julius Musyoki, KRA Customs and Border Control Commissioner while confirming the suspensions, disclosed that seven of the nine containers, had already been intercepted for further verification at the Kenya Ports Authority (KPA) yard in Mombasa.

The remaining two containers which had already left the port are being traced, he said.

“It is no longer business as usual at all our ports of entry. Any KRA officials suspected of abetting tax evasion will continue to face the full wrath of the law alongside their accomplices who include unscrupulous traders importing their cargo through the port of Mombasa,” Mr Musyoki said.

All the intercepted containers, Mr Musyoki added, had been risk profiled on doubtful description and value of the goods in the suspect containers.

By releasing the nine mis-declared containers without a physical verification, the four officers are in breach of the KRA code of conduct and have been suspended pending further investigations, the taxman said Wednesday.

The KRA standard operating procedure specifies that all imported cargo, be discharged and stacked by KPA at the port or at an authorised Inland container depot pending verification and release by the taxman, Kenya Bureau of Standards and KPA.

Once an importer or agent has duly processed the applicable documents and paid taxes upon verification, the goods are released and gate passes issued for exit of cargo.