The Kenya Revenue Authority (KRA) has seized a consignment containing 53,000 under-declared smartphones at Eldoret International Airport. According to KRA, the consignment was intercepted after an intelligence report indicated it contained undeclared mobile phones and other high-end electronic goods. The cargo had been declared under five Customs entries and included shoes, clothing, automotive spare parts, household goods, electronic accessories, and other assorted items.
An initial declaration listed only 3,000 smartphones, but verification established 55,607 ordinary smartphones and 309 undeclared high-end smartphones. The high-end devices included Samsung Galaxy S26 Ultra, Samsung Galaxy Z Fold, and Apple iPhone 17 Pro Max models. KRA said the consignment reflected both under-declaration and non-declaration of dutiable goods. The authority conducted a verification exercise to establish whether all mobile phones contained in the consignment had been properly declared.
The alleged tax evasion contravenes Section 203 of the East African Community Customs Management Act (EACCMA), 2004. The law provides that a person who makes a false or incorrect Customs entry, or knowingly participates in the fraudulent evasion of duty, commits an offence. KRA cited the law, stating that a person who makes any entry which is false or incorrect in any particular, or is knowingly concerned in any fraudulent evasion of the payment of any duty, commits an offence.
A person convicted under the provision is liable to imprisonment for a term not exceeding three years or a fine of up to US$10,000. KRA said it was intensifying efforts to uncover tax evasion schemes to improve revenue compliance and ensure adherence to tax laws and procedures. The authority is actively engaged in unearthing tax evasion schemes to boost tax revenue compliance and maintain fair trade within the market.
KRA also appealed to members of the public, taxpayers, and businesses with information on individuals, companies, or networks involved in the generation, sale, purchase, or use of fictitious VAT invoices to report them. The authority said information provided would be treated confidentially and the identity of informants kept anonymous. This move aims to enhance tax compliance and prevent tax evasion.
The seized consignment and potential tax loss highlight the importance of accurate declaration and compliance with tax laws. KRA's efforts to uncover tax evasion schemes demonstrate its commitment to ensuring fair trade and improving revenue compliance. The authority's actions also serve as a warning to individuals and businesses involved in tax evasion.
The incident at Eldoret International Airport is part of KRA's ongoing efforts to enhance tax compliance and prevent tax evasion. The authority's vigilance and intelligence-driven operations have led to the seizure of under-declared goods, averting potential tax losses. KRA's actions aim to promote a fair and transparent tax environment, ensuring that all businesses and individuals comply with tax laws and regulations.
Key points
- KRA seized 53,000 under-declared smartphones at Eldoret International Airport, averting a potential tax loss of Sh21.5 million.
- The consignment was found to contain both under-declared and non-declared dutiable goods, including high-end electronic devices.
- KRA is intensifying efforts to uncover tax evasion schemes and promote tax compliance.
