DALC EDUCATION TAX EVASION SCAM

It was all over the media a month or so ago. I saw the ads even On DALC's media of choice KTN and Standard. Do you remember the KRA Ads counting down to the number of days people had to submit their tax returns? Did the DALC management duo of Humphrey Peter Oborah and Faith Kinyae read them? The deadline to submit tax returns elapsed and DALC did not comply. Well, the staff at DALC did not fill any tax returns because as we all know, the staffs are damn sure that their PAYE deductions are not submitted. In short, DALC EDUCATION acts as if taxes are for the fools and they do not fall in the fools' category. Someone should be in jail as we speak but THIS IS KENYA.

 

Now, if a company of DALC's stature can evade taxes for all these years, what the heck are the KRA people doing? How much taxes have they missed out? Someone should be in jail as we speak but THIS IS KENYA.

 

If we give an average of sh.4000 as the expected PAYE multiplied by 60 staff it amounts to a whooping 240,000 per month. In one year, DALC will have cheated the taxman more than sh. 2,880,000 in income PAYE alone. Now this is a rough estimate that is definitely on the lower side as the majority of the staff are earning >35,000 which will definitely mean that their deductions are more than the sh. 4000 we have used in this estimation. Someone should be in jail as we speak but THIS IS KENYA.

 

How about the income tax that DALC ought to pay as a corporate? We saw that revenues last year were in the 400,000,000 in my earlier post and I'd bet that the net profit was half that amount since we know for sure that no monies are remitted to Cambridge or Oxford as DALC states. The hefty amount DALC Education charge for examinations is simply another avenue for DALC to fleece people some more money. At a rate of 30%, the corporate tax that DALC Education should have paid this year could not have been less than sh.50, 000,000. That's a lot of money but I am thinking they must have declared losses so as to avoid paying this tax. Ladies and gentlemen, DALC is not only cheating innocent Kenyans but the KRA too. Someone should be in jail as we speak but THIS IS KENYA.

I am not sure about the VAT on services rendered. That should be deductable from the fees students pay but maybe it might need a tax expert to deal with that. Nevertheless, DALC makes sure that it keeps all the evidence of transactions and you have nothing. How many people feel that this is the correct way of doing business? Even an airline gives you some confirmation of your payment at some point. Despite the fact that, that you can book online these days.  At DALC EDUCATION, they don't give you an admission letter, no receipt and no certificate. Records of the transactions are held in their server (under their control), admission letters and certificates come from currently non-existent UK institutions. Someone should be in jail as we speak but THIS IS KENYA.

 

I doubt if KRA goes through the payment records held in the DALC server and I am sure when it comes to the worst, Oborah will simply make backups of the payment records and format the disks. Meanwhile, DALC students are made to believe that this is the way of the future. Everything must be online. To some extent that is true but remember all that information including payment confirmations are held and controlled by a fraudster. So the real reason for Oborah getting all the transactions online is to minimize exposure and make it easy to cover his tracks. Someone should be in jail as we speak but THIS IS KENYA.

 

All the stuff he speaks about going into the 22^nd Century with a server based system and online transaction is nonsense. He doesn't want anyone going through his receipt book or ETR records and asking hard questions about revenues, profits & taxes. Someone should be in jail as we speak but THIS IS KENYA.

 

My take is that this matter may have been solved the Kenyan way and things left as they were. Or is KRA totally inept despite being tipped a number of times about the fraudulent activities at DALC EDUCATION. When will KRA take action if they truly mean it when they say that "Kulipa Ushuru ni Kujitegemea". Or is this Ushuru going to a fat cat in the KRA? Someone should be in jail as we speak but THIS IS KENYA.

 

I totally refuse to believe that a company that had over 100 staff at one point can fail to remit PAYE without a finger being raised. I'd rub salt into the fleshy wound by adding that when you work at DALC EDUCATION. NSSF,NHIF numbers are useless as Oborah and Faith Kinyae just love the idea of not submitting the these mandatory requirements. Someone should be in jail as we speak but THIS IS KENYA.

 

After all, DALC is Cambridge and Oxford in Kenya. Believe IT. THIS IS KENYA.