The Kenya Revenue Authority (KRA) has provided additional funds of 1.2 billion shillings to increase the workforce.
The new staff is expected to focus on intelligence gathering and identifying and apprehending tax evaders. The proposal by the Congressional Budget and Finance Committee is part of the government’s ongoing efforts to increase tax revenues and reduce debt reliance.
By expanding its team, KRA aims to improve revenue collection from planned payments and strengthen the search for tax evasion nationwide. Treasury’s target for the fiscal year starting next month is to raise additional taxes by at least 400 billion shillings.
KRA, which accounts for the bulk of the government’s cash flow, is expected to generate $2.43 trillion in revenue for the fiscal year ending in June, beating the current target of $2.4 trillion.
To achieve this ambitious goal, the Treasury plans to harness the power of data and integrate the KRA system with banks and mobile money platforms.KRA intends to strengthen its control capabilities to effectively prevent tax evasion.
Authorities can better monitor and control the activity by installing internet cameras in excise processing plants.In addition, the full implementation of digital electronic tax records (ETRs) will promote transparency and accountability in the tax collection process, helping to increase revenue.
In addition, Kenya’s law enforcement department has been actively using various databases to prosecute tax evasion.This includes examining bank statements, access records, vehicle registration records, Kenya Energy records, water bills and Kenya Civil Aviation Authority (KCCA) records to identify individuals holding confidential assets such as aircraft.
KRA also uses car registration details to track people who drive luxury cars but have little evidence of paying significant taxes.
Concerns about tax leakages are on the rise as the KRA focuses on increased imports of luxury goods and real estate investments.
By addressing this issue, KRA has realized significant revenue streams, bringing billions of shillings in additional revenue to the national treasury.The KRA is actively seeking more information about vendors and state contractors because potential tax evasion could be revealed.
By establishing close relationships with offshore structures and applying complex supervisory measures, accreditation bodies aim to reduce tax evasion and develop a culture of compliance among taxpayers.
