Milimani Law Court has sentenced a Chinese national to pay Ksh 6 million as fine for failing to declare income for the years 2018 and 2019 and Value Added Tax (VAT) totaling to Ksh. 162,233,500 for each year.
Mr. Cai Rongui of Yiyuan Trading Company Limited and a limited liability company was facing four counts of fraud where each count was fined a total of Ksh 1.5 million.
“The Director of Public Prosecutions (DPP) has today secured a conviction after a Milimani Law Court sentenced a Chinese national to pay a fine of 6 million for unlawfully and deliberately defaulting to declare income for the years 2018 and 2019 and Value Added Tax totaling to Ksh. 162,233,500 and Ksh. 162,233,500, respectively.
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Mr. Cai Rongui was charged with four counts of fraud in relation to tax contrary to Section 97 (e) as read with Section 104 (3) of the Tax Procedure Act, 2025, in which the court fined him Ksh 1.5 million in each count.
On the 31st day of June 2019, in Nairobi County, within the Republic of Kenya, being the beneficial owner of Yiyuan Trading Company Limited and a limited liability company, unlawfully and deliberately defaulting to declare income for the year 2018 and 2019 to the commissioner as required by the Income Tax Act CAP 470 laws of Kenya, thereby affecting income tax liability of Ksh. 48,670,050.
He is also accused of failing to declare Value Added Tax of Ksh 162,233,500 to the commissioner as required by the Value Added Tax Act CAP 35 laws of Kenya, thereby affecting Value Added Tax liability of Ksh. 25,957,360.
The prosecution, led by prosecution counsel Mr. James Gachoka, called a total of 2 witnesses in the matter.” said ODPP
