A Chinese national was on Friday sentenced to four years in jail or pay a fine of Sh6 million after the Milimani Court found him guilty on four counts of tax fraud totaling Sh74,627,410.

The charges against Cai Ronggui, the beneficial owner of Yiyuan Trading Company Limited, were filed in court in December 2021 after failing to declare income tax and VAT for 2018 and 2019.

But Ronggui, who appeared before Magistrate Bernard Ochoi, denied the four charges even as the court learnt that the Chinese businessman had been out on bail throughout the trial.

According to court documents, Yiyuan generated income totaling Sh162,233,500 in 2018 and 2019 which he did not declare to Kenya Revenue Authority (KRA), hence evading taxes.

In 2018, it earned an undeclared sum of Sh60,453,000, attracting a tax income liability of Sh18,135,900, and generated Sh101,780,500 in 2019, with a Sh30,534,150 tax liability.

Read More

  1. Cancel customs bonds promptly to avoid penalties in regional trade, advises PwC
  2. KRA's new tax rates for fringe benefits, deemed interest and low-interest loans
  3. KRA issues ultimatum to commercial vehicle owners over advance tax deadline

For the two years in question, Ronggui’s company failed to declare VAT, resulting in additional tax liabilities of Sh9,672,480 in 2018 and a further Sh16,284,880 in 2019.