Wamalwa’s vehicle among those deregistered by KRA, tax evasion cited

The Kenya Revenue Authority has deregistered 121 vehicles whose owners “acquired fraudulent registration and evaded tax”.

Among those listed for deregistration include Water and Irrigation Cabinet Secretary Eugene Wamalwa’s Range Rover — registered as an Isuzu truck — which has been held at the KRA’s Nairobi yard since June.

Mr Wamalwa’s personal assistant - Kizito Temba - who earlier told the Nation that the problem was caused by KRA could not be reached for comment.

KRA, which issued a notice in June calling for the vehicles to be presented to the agency for clearance, made the decision when owners failed to respond.

In a joint public notice with the National Transport and Safety Authority published on Thursday, KRA listed the vehicles whose owners are suspected to have evaded duty amounting to Sh500 million and urged them to surrender the documents for cancellation.

“The authority has ground to believe the vehicle registration numbers have been obtained in error, fraudulently or in a manner contrary to the ... Traffic Act,” read the notice.

Twelve vehicles were presented to KRA for inspection after the first notice was issued but only three were cleared.

“Those who have not presented the vehicles continue to violate the law and may be charged,” KRA acting commissioner in charge of investigations and enforcement told the Daily Nation.

A syndicate has been blamed for tax evasion and smuggling into the country of vehicles older than eight years.

KRA said it was investigating if its workers were involved in the dirty trade blamed for loss of millions of shillings in revenue.

The vehicles are mostly those stolen overseas while others pass the port as transit cargo destined for Uganda or South Sudan.

They are then diverted between the port and the purported destinations and fake number plates or those taken from accident scenes affixed.

SHOCKED BUYER
KRA had given the vehicle owners 14 days to present them for clearance.

At least four banks were caught up in the scam that now threatens to hurt the lending industry.

One of the individuals who presented his car when KRA listed it was shocked at the decision.

The businessman bought the car using a bank loan.

He said he had been repaying the loan yet the vehicle was parked at the KRA inland container depot on Mombasa Road.

“The puzzle is that I did a search at KRA and everything was fine. The bank also did a search before financing me,” the businessman told the Nation on Thursday.

“I was even assured that everything was well when the log book was transferred to my name. I am afraid my dreams are going to be crushed,” said the vehicle owner who sought anonymity.

That the vehicles fully identified by KRA with chassis numbers, engine numbers, registration numbers and owners laid bare failed to be presented to the taxman and none has been impounded, shows the craftiness the syndicate has gained to frustrate State functionaries.