This archive report was first published on 17 July 2020.
On July 17, 2020, the Kenya Revenue Authority (KRA) began reviewing firms' and workers' annual income tax returns for unpaid duty, intensifying a crackdown that could lead to more tax cheats being prosecuted.
The taxman's intelligence and enforcement unit is investigating workers' and businessmen's sources of income and their expenditure against their tax remittances, using various databases including import records, cash trail in bank accounts, motor vehicle registration details, Kenya Power data, and supplier dealings.
Companies and individuals doing business with the government and counties, as well as those declaring supplier contracts to the KRA, are particularly under scrutiny.
According to the KRA, the audit may involve tax returns review, comprehensive audits, or investigations, which could result in additional assessments or, in cases of fraud, prosecution of the offenders.
Those found guilty of tax evasion could face severe consequences, including having their personal identification numbers (PINs) disabled, risk of having their cargo blocked at the Port of Mombasa, and even travel bans.
The Tax Procedures Act of 2015 grants the taxman the authority to issue travel bans on suspected tax cheats, collect unpaid duty directly from suppliers and bankers of defaulters, and prosecute those in arrears.
The KRA has assured that it will notify the firms and individuals captured in the probe and offer them time to settle the breaches before punishment.
