Two held in Rwf384 million tax fraud

Two consultants in Kigali have been arrested for allegations of manipulating Electronic Billing Machines (EBM) and trying to defraud the tax authority of more than Rwf384 million.

Two consultants in Kigali have been arrested for allegations of manipulating Electronic Billing Machines (EBM) and trying to defraud the tax authority of more than Rwf384 million.

Noel Nzabonitegyeka and Christella Mutesi were arrested on Wednesday  following investigations that discovered that their fraudulent activities were leading to losses in tax collection, according to Drocella Mukashyaka, the deputy commissioner in charge of taxpayer services at Rwanda Revenue Authority (RRA).

The duo was arrested through collaboration between Rwanda National Police (RNP)’s Revenue Protection Unit, which conducted investigations and tracked them down.

The Commanding Officer of Revenue Protection Unit, Jean Nepo Mbonyumuvunyi, said that the suspects worked together by creating a ghost company to acquire an electronic billing machine, which they later on misused to create false receipts and invoices.

“They created a company in 2014 that was meant to deal in construction materials, but investigations show that they did not sell or a buy a single unit, yet their billing machine indicates that they had amassed taxes,” he said.

“Investigations found that the office did not have a physical address or contacts. We eventually arrested the duo and found that they were using the machine with other unscrupulous businesspeople to create false receipts.”

Mukashyaka said the suspects had managed to pocket Rwf120 million in 2014 from RRA through wrongful claims, while they had also claimed over Rwf384 million before they were arrested.

She commended Police for its partnership in overcoming illegal business activities, and for acting swiftly to apprehend those involved in fraudulent activities.

“This should serve as an example to those in the business community who are planning to indulge in such activities. Sooner or later we shall catch up with them and they will face the law,” she said.

Mbonyumuvunyi said such activities hurt the country’s growth plans, and warned the business community against getting involved in activities that undermine the economy.

“Investigations will continue in order to apprehend all those who were involved in this scam,” Mbonyumuvunyi added.

 

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