The Kenya Revenue Authority has turned its guns on hundreds of Container Freight Stations (CFSs) on the Coast region as the crackdown on a suspected customs tax evasion network shifts to insiders.
The taxman this week summoned directors of 200 CFSs suspected to have conspired with its verification officers both at the port of Mombasa and at the document processing centre to pass entries that effectively denied the agency millions of shillings.
The CFSs are customs-bonded warehouses that are licensed by the KRA. The suspicion that KRA insiders abet tax evasion has been rife even as the taxman has lately targeted similar crackdown on other sectors such as manufacturers, real estate investors, betting firms and retailers.
The first batch of CFS managers recorded statements in Nairobi on Monday, a screening exercise that continues up to Friday. But the CFSs directors have dismissed the probe and linked their woes to their opposition for Standard Gauge Railway (SGR) cargo order.
“We understand they summoned us because of our fight against SGR which has finished our business. Any other allegations of tax evasions are just fabricated,” said one of the affected directors who asked not to be named for fear of reprisals.
Last week, KRA Commissioner for Intelligence and Strategic Operations summoned the CFSs directors to Nairobi where they were asked to submit documents and details of their operations at the Director of Criminal Investigation Training College.
The documents included Memorandum of Association, copies of KRA registration licences, list of employees, associates and copies of port and airport passes.
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