Cai Ronggui, the owner of Yiyuan Trading Company Limited has been jailed for four years for tax fraud amounting to Ksh.74.6 million.
The case was ruled by Magistrate Hon.Bernard Ochoi at Milimani Court.
According to court proceedings, Cai generated significant income over two years but deliberately failed to report it to the Kenya Revenue Authority (KRA).
In 2028, the company earned Ksh.60.4 million which resulted to income tax liability of Ksh.18.1 million but failed to declare it.
The company also failed to declare VAT for the two years which resulted to tax liability of Ksh.25.8 million.
However, despite denying the charges, the businessman had been out on bail since the case was filed in December 2021.
Magistrate Ochoi found him guilty of four counts of tax fraud after failing to declare both income tax and Value Added Tax (VAT) for three years.
Apart from the ruling of four years in prison, Cai was also given an option to pay a fine of Ksh.6 million.
