The Kenya Revenue Authority (KRA) will launch a database that will be linked to the bank accounts of Kenyans in an effort to identify tax defaulters.
The database known as Data Warehouse and Business Intelligence will be able to link the taxpayers profile with other third party systems like their banks and utility firms.
This is meant to ease the process of determining tax compliance by Kenyans.
KRA's project manager Yvonne Wafula says the database will provide for improved data matching and risk profiling.
It is one of the measures to reduce tax defaulting and is part of the Treasury’s Public Financial Management Programme.
The database which will cost Sh765 million will be installed by 2017.
Currently, KRA employees use different databases in gathering information to determine individuals who are cheating on their taxes.
The new database will integrate all systems, making the gathering and analysis of information on tax payers all that much easier.
The time spent by the employees on data collection will be reduced significantly.
The database will help in easily identifying tax evasion by unscrupulous individuals and business owners.
The new database comes even as the authority stepped up their electronic surveillance systems that has significantly improved tax collection.
In doing so, it is estimated that the KRA collected a record of over 1 trillion shillings in tax revenues for the year ended June 30, 2015.
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Although the rise in the collected revenues was impressive, it still did not reach the Treasury's target of 3 trillion,the Business Daily reports.
The treasury has been under pressure to collect revenue meant to fund several development projects in the country.
Officials remain hopeful that the new measures will both increase the collected revenues and do away with tax evasion.
Calls from Kenyans.co.ke to get more information on the database went unanswered.
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