The Kenya Revenue Authority (KRA) has won a value-added tax (VAT) fraud case against a Chinese firm.
According to the taxman, the company evaded taxes by wiring incomes through shell companies to accounts in China.
The fraud, commonly known as ‘the missing trader’ tax evasion scheme, was demonstrated in an appeal filed by China Communications Construction Company Limited at the Tax Appeals Tribunal (TAT) while seeking to have a tax assessment of Sh1.05 billion set aside.
The firm is a majority state-owned, publicly traded, multinational engineering and construction company founded in the Republic of China.
It is engaged in the design, construction, and operation of infrastructure assets, including highways, bridges, tunnels, railways, roads, airports, marine ports, and oil platforms.