KRA Turns to Spies to Stop Tax Evasion

On Tuesday, November 26, the National Assembly Budget and Appropriation Committee requested an additional allocation of Ksh2 billion for hiring 1,000 intelligence and enforcement officers for KRA.

A report by Business Daily stated that a large chunk of the officers will be based in the field. They will conduct investigations into wealthy individuals’ sources of income against their expenditure.

“Increase Ksh2 billion to the Kenya Revenue Authority budget for recruitment of an additional 1,000 officers countrywide in order to generate an additional Ksh50 billion in revenue in support of the achievement of this year’s revenue targets,” the National Assembly committee statement read.

Ivy Kimani, Joseph Kimani, Mary Wanjiru, Kevin Munyiri and George Ngacha facing Tax evasion charges  in Nyeri court on October 17, 2019

Apart from the recovery of unpaid taxes from individuals, the new 1,000 officers will also go after corporates in an effort to resolve tax disputes faster.

“The new hirings have been part of the plan because as we get the intelligence from data analysis and whistleblowers, we need to fast-track the real catching of the tax evaders,” KRA top official who sought anonymity told Business Daily.

The latest proposals came after President Uhuru Kenyatta on November 5, warned Kenyans against any form of tax evasion and promised stern action from the government.

“In all other cases, and, in particular, where there has been tax evasion or other criminal conduct, the law shall and must follow its natural course,” President Kenyatta told journalists at Safari Park Hotel during 16th annual taxpayers luncheon.

Databases such as bank statements, water bills, and motor vehicle registration systems will also be used in the crackdown against tax evasion. The data has been instrumental in discovering landlords and wealthy individuals who fail to pay their taxes.

Keroche Breweries CEO Tabitha Karanja and Husband    Karanja in court over Tax Evasion charges on August 24, 2019

Other techniques the taxman has been using include the use of auctioneers to track properties owned by individuals and companies that fail to remit their taxes.

The renewed fight against tax evasion has seen some big names such as tycoons Humphrey Kariuki and Tabitha Karanja taken to court.

 

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