This archive report was first published on 23 June 2020.
Kenya Revenue Authority (KRA) has launched a massive crackdown on wealthy individuals and firms owing Sh250 billion in taxes. The taxman has identified these tax evaders and will take severe action against them.
According to KRA, the affected individuals and firms will have their assets seized and auctioned, their personal identification numbers (PINs) disabled, and their cargo blocked at the Port of Mombasa. They will also be prohibited from continuing their business operations.
As stated in a notice by KRA, 'all taxpayers with outstanding tax liabilities and have not paid or entered payment plans to do so by 20th of June 2020, failure to which appropriate enforcement measures will be instituted against the outstanding debt.'
Those affected are advised to contact the Tax Service Office to settle their tax debts or propose payment plans.
Should the taxman follow through with its threat, affected individuals and businesses will be unable to perform transactions that require proof of active registration as a taxpayer, such as registering land titles, transferring and licensing motor vehicles, and registering business names and companies.
As reported, KRA missed its half-year tax collection target by Sh88.3 billion in January, netting Sh857.8 billion over the period. The taxman has been using various databases, including bank statements, import records, and Kenya Power records, to pursue suspected tax cheats.
