Three arrested over tax evasion

Three people have been arrested in Kigali in connection to tax evasion after they allegedly connived, smuggled and sold 270 tonnes of rice into Rwanda and forged customs documents with intent to evade taxes.

Celestin Bimenyimana and Thelesphore Ntazinda, both businessmen in Kigali, and Jean Claude Mbarushimana, a Rwanda Revenue Authority Customs officer in Rubavu district are accused of fraudulently selling smuggled rice on disguise that it was on transit to the Democratic Republic of Congo.

The trio are said to have evaded taxes amounting to Rwf62 million.

How it happened

Dorocella Mukashyaka, deputy commissioner for taxpayer services in RRA, said on October 27, Customs at Gatuna border cleared a truck carrying the rice belonging to a Pakistani, as a transit to the DRC.

However, on reaching Kigali, the Pakistani sold the rice to Bimenyimana.

“Bimenyimana then drafted a fake agreement stipulating that he had sold the goods to a DRC national and went ahead and sold the rice in Kigali,” Mukashyaka said.

“Mbarushimana, our customs officers in Rubavu, who was charged with clearing goods and making sure that they have crossed to the other country, indicated that the trucks had crossed to DRC, but investigations, using our electronic system proved otherwise and showed that the vehicles didn’t leave the Rwandan territory,” she explained.

“Be it the employee of Rwanda Revenue Authority or any other person, if they are implicated in these fraud cases, they will face justice,” she warned.

Police spokesperson, Chief Supt. Celestin Twahirwa warned the business community against such illegal acts.

“After thorough investigations, we found out that the rice was sold in Kigali and we found it in a warehouse in Nyarugenge market, and also found out that all documents they used were forged,” CSP Twahirwa.

The suspects, he said, are facing charges of tax evasion and forging documents under articles 346 and 369 of the penal code.

Article 369, partly states that a taxpayer, found guilty of tax evasion shall be liable to a term of imprisonment of between three six months and a fine equal to the evaded tax.

If the taxpayer is guilty of deliberate tax evasion, such as false deliberate accounting entries, forgery and falsification of records or any other act punishable by law, he/she shall be liable to a term of imprisonment of six months to two years and a fine equal to the evaded tax.