By Antynet Ford
Kenya Revenue Authority (KRA) has launched a probe into political activist Morara Kebaso’s alleged failure to file returns on a Ksh 186 million sale.
In a notice sent to the Inject political leader, the taxman indicated that five companies, including Igrow Digital Enterprise, Morara Home Furniture, Luku Fashion, Morara Properties Limited, and Backtent Security Limited, have been declaring nil income or filing nil returns despite owning properties, business undertakings, and other assets.
They listed three bank accounts belonging to Morara Properties Limited, Kebaso himself, and Morara Home Furniture saying they have been receiving money for the last three years.
The tax collector said Morara Properties and Morara Home Furniture are real estate and furniture-selling businesses that have been receiving deposits mostly from M-pesa Paybill.
They claimed that even the third account registered under his name receives payment for furniture and interior fittings.
An analysis by KRA indicates that the accounts owned by Kebaso’s companies and his account received a total of Sh186.3 million broken as Sh9.5 million credit in 2022, Sh31.9 million in 2023, and Sh144.9 million last year.
This indicates that Morara Furniture received 80 per cent of the total deposits amounting to Sh146.9 million.
“The trade credits were compared with income tax turnover declared in the income tax returns, to which it was noted that you are a non-filer, to determine undeclared income turnover. It was noted that you are not registered for Value Added Tax (VAT),” Kebaso was told by KRA.
The taxman said Morara Kebaso will be forcefully registered by the commission as per Section 34 of the MAT Act as his bank deposits are above the Sh5 million threshold.
They stated that the political activist has Sh25.7 million of VAT that is due.
In total, the authority says Kebaso owes the country Sh27 million in taxes payable coming from the Sh25.7 million of VAT due plus the Sh1.37 million coming from the income tax.
“These assets are owned despite the declaration of nil or non-filing of income.”
Kebaso has been summoned to appear before the taxman at its offices in Nairobi for an interview next week on Monday.
“You are hereby requested to avail for examination copies of the entities’ records, books of accounts, and any other documents including copies of general ledger, asset register, invoices, purchases and sales ledgers, payroll records, directors accounts, debtors, and creditors ledger, bank statements for both companies and the directors,” KRA said to Morara Kebaso.
However, the political activist dismissed the claims by the taxman saying that he is a law-abiding citizen.
Kebaso shared tax-compliant certificates issued to him by the revenue authority in 2022 and 2023.
He termed the claims by KRA as a political witch-hunt.
“This is nothing but a political witch-hunt. I have always followed the law to the latter and I am a tax-compliant businessman. I can never think of defrauding a country I love in any way,” Morara Kebaso stated.
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