About 1,000 car owners in the country will soon be required to pay taxes or have their vehicles impounded by the tax authority for having evaded the tax system. In a statement to Nation, Kenya Revenue Authority Officials said that the vehicles passed through a faulty system when the authority was in the process of switching from one clearing system to a new one.
The hitch affected vehicles brought in between 2004 and 2005, when KRA was implementing the Simba 2005 System to replace the 'Bishops Office Freight Forwarders Integrated Network' (Boffin) system that has been in operation since 1989.
“A technical problem during the transition from the Boffin system to the current Simba system was exploited by some dubious dealers to defraud the taxman,” said Mr Kennedy Onyonyi, KRA head of communications in an interview with the Nation.
Some of the vehicles whose registration numbers were published in The Daily Nation on Monday 21st 2012 had been cleared after paying custom duties of Shs. 1 or were passed in the category of zero rated cars.
Fraudulent agents have been cheating car buyers into paying them money alleged to be tax and issue fake receipts only for the buyer to be pinned down later by KRA.
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