The sports category has moved to a new website.

KRA allocated Sh1.2B to go after Kenyans evading tax

KRA is set to unleash a team of officers in its relentless pursuit of tax evaders

A Kenya Revenue Authority (KRA) official inspects packages of liquor that were seized on January 8, 2019 at a residential estate in Nairobi. Photo credit: Tony Karumba /AFP via Getty Images

The Kenya Revenue Authority (KRA) has been granted an additional Sh1.2 billion in funding to strengthen its workforce.

The new hires will be expected to focus on intelligence gathering, identifying and apprehending tax evaders.

The proposal by Parliament’s Budget and Appropriations Committee is part of the government's determined efforts to enhance revenue generation and reduce the dependency on borrowing.

By expanding its team, the KRA aims to enhance revenue collection from planned levies and intensify its pursuit of tax evaders across the country.

ADVERTISEMENT

The Treasury's objective for the upcoming fiscal year, beginning next month, is to raise a minimum of Sh400 billion in additional taxes.

The KRA, responsible for the majority of the government's cash flow, is projected to achieve revenue collections amounting to Sh2.43 trillion, surpassing the current target of Sh2.04 trillion for the fiscal year ending in June.

To achieve this ambitious goal, the Treasury plans to leverage the power of data and intergrate KRA systems with banks and mobile money platforms.

ADVERTISEMENT

To combat tax evasion effectively, the KRA intends to enhance its surveillance capabilities.

The authority will deploy Internet-enabled cameras at excisable goods processing plants, enabling them to monitor and track activities more efficiently.

Furthermore, the full implementation of digital electronic tax registers (ETRs) will contribute to revenue growth by promoting transparency and accountability in the tax collection process.

Additionally, the KRA's enforcement unit has been actively utilizing various databases to pursue suspected tax evaders.

ADVERTISEMENT

These include scrutinizing bank statements, import records, motor vehicle registration details, Kenya Power records, water bills, and data from the Kenya Civil Aviation Authority (KCCA) to identify individuals who may possess undisclosed assets, such as aircraft.

Furthermore, the KRA is using car registration information to uncover individuals who drive high-end vehicles yet have little evidence of substantial tax remittances.

The KRA has turned its attention to the rising importation of luxury goods and substantial investments in real estate, which have raised concerns about potential tax leaks.

By addressing this issue, the KRA could potentially tap into a significant revenue stream, yielding billions of shillings in additional income for the Exchequer.

ADVERTISEMENT

The tax authority is actively seeking detailed information regarding suppliers and contractors engaged by county governments, as this could shed light on potential tax evasion schemes.

By establishing stronger linkages with external entities and utilizing sophisticated surveillance measures, the authority aims to curtail tax evasion and foster a culture of compliance among taxpayers.

JOIN OUR PULSE COMMUNITY!

ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

The Kreativepreneurship Program: Empowering Kenya's Young Creatives

The Kreativepreneurship Program: Empowering Kenya's Young Creatives

Tanzania gov't launches million dollar real estate venture in Nairobi

Tanzania gov't launches million dollar real estate venture in Nairobi

Family Bank loses board chairperson 3 weeks after appointment

Family Bank loses board chairperson 3 weeks after appointment

Hashi Energy disposes of 31 trucks, & other assets as it winds up after 33 years

Hashi Energy disposes of 31 trucks, & other assets as it winds up after 33 years

Sabina Joy, CBD home & other assets owned by billionaire Gerald Gikonyo

Sabina Joy, CBD home & other assets owned by billionaire Gerald Gikonyo

In shadow of the business summit: The U.S. buys right to pollute Angola with toxic waste

In shadow of the business summit: The U.S. buys right to pollute Angola with toxic waste

The role of digital payments in Kenya's online gaming market

The role of digital payments in Kenya's online gaming market

EPRA announces new fuel prices  for June & July

EPRA announces new fuel prices for June & July

Kenya fulfils 6 of IMF's strict conditions in budget & Finance Bill 2024

Kenya fulfils 6 of IMF's strict conditions in budget & Finance Bill 2024

ADVERTISEMENT