KRA Starts Auditing Tax Returns to Nab Cheats
Kenyan firms and workers who have been evading taxes are in for a rude shock after the Kenya Revenue Authority (KRA) intelligence and enforcement unit started reviewing their annual income tax returns for unpaid duty.
“Kenya Revenue Authority (KRA) is currently undertaking comprehensive compliance checks on all taxpayers,” said the KRA in a notice.
The unit will investigate the sources of income and the expenditure against tax remittances. The process will include matching returns with other databases including import records, cash trail in bank accounts, motor vehicle registration details, Kenya Power data, supplier dealings, and motor registration details.
“This may be done through tax returns review, comprehensive audits or investigations. The outcome of which may include additional assessments or in the case of fraud; prosecution of the offenders.” The notice stated.
On the taxman’s spotlight are firms and individuals doing business with the government and counties and those that declare supplier contracts to the KRA.
If found guilty, persons who have cheated the system risk prosecution, their personal identification numbers (PINs) disabled and having their merchendise at the Port of Mombasa blocked and/or seized.
However, KRA says they will be lenient with the tax cheats and will give them ample time to settle their tax breaches before punishment.
The revenue authority has failed continuously to reach their tax targets over the last years and with the hit on the economy by the pandemic and unless good measures are taken, the tax collection will hit a new low. Its revenue target for the year starting July is Sh1.621 trillion.