The Kenya Revenue Authority (KRA) is cautioning the public against using fraudulently registered vehicles, and those whose duty might not have been paid. According to a press release by the taxman, KRA is cracking down on parties selling vehicles whose duty has not been paid, an offence that violates the East African Community Customs Management Act 2004.
“KRA has embarked on investigations to identify the perpetrators of the fraudulent scheme, it is conscious that some of these vehicles may have been sold to innocent Kenyans who are not part of the scheme,” says Acting Commissioner for Investigations and Enforcement Dr Edward Karanja.
According to section 211 of the East African Community Customs Management Act of 2004, individuals in possession of goods that they know or ought to know to be uncostumed can be convicted and imprisoned for up to five years, or pay a fine equal to half the value of the duty.
“A person who — (d) acquires, has in his or her possession, keeps or conceals, or procures to be kept or concealed, any goods which he or she knows, or ought reasonably to have known, to be (iii) uncustomed goods, commits an offence and shall be liable on conviction to imprisonment for a term not exceeding five years or to a fine equal to fifty per cent of the dutiable value involved, or both of the goods” reads Section 211 (d).
The notice comes after the agency found irregularly registered vehicles above the 8 year age limit, which either bear counterfeit stamps or no stamps at all. In an earlier release, the agency called upon the public to verify custom duty payments status of customs duty of all registered vehicles with KRA before purchasing.
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