The Kenya Revenue Authority is targeting governors over tax evasion in their county governments as well as from their individual businesses.
According to a report by The Standard, at least 10 governors are among 600 individuals being sought after for alleged tax fraud, which is estimated to have deprived the government of about Ksh250 billion in revenue.
The paper further stated that KRA had written a demand letter to the affected counties, asking for immediate payment of accrued taxes, failure to which they will be prosecuted.
Some of the county chiefs face personal tax bills for owning businesses generating millions of shillings annually, yet they regularly file nil returns.
The demand letter further summoned the targeted individuals to explain how and why they failed to pay taxes.
Others have failed to file tax returns as required by law, while a few were said to be living beyond their means.
“One governor was the other day saying how wealthy he is and that he owns a lot of property in the city, but he has not filed any returns,” revealed a senior official aware of the probe.
The Mombasa Road-based publication further claimed that a governor from North Eastern Kenya had already presented himself at Times Tower to argue out his case.
The taxman is claimed to have also established a special desk at its Upper Hill offices to grill the targeted persons.
A total of 17 county governments and assemblies owe taxes amounting to Ksh5.6 billion.
This includes Ksh2.3 billion Pay As You Earn (PAYE) tax, Ksh1.2 billion withholding tax and Ksh2 billion in other forms.
KRA Commissioner for Domestic Taxes, Elizabeth Meyo, warned that governors face prosecution if they fail to comply with the agency’s demands.
“County chiefs should ensure that they have paid personal taxes from their incomes.
We are appealing to governors that if they have other businesses, they should file their returns or else we will come for them,” stated Meyo.
This comes at a time when several high profile individuals are out on bail after being charged with tax evasion.
