This archive report was first published on 17 July 2020.
As the Kenya Revenue Authority (KRA) struggles to meet its tax targets, the agency has announced a crackdown on tax evaders. According to a notice issued by the KRA, the agency's intelligence and enforcement unit has started reviewing annual income tax returns to identify individuals and companies that have been evading taxes.
“Kenya Revenue Authority (KRA) is currently undertaking comprehensive compliance checks on all taxpayers,” said the KRA in a notice, dated July 17, 2020.
The review process will involve matching tax returns with other databases, including import records, bank account statements, and supplier dealings. The KRA will also conduct comprehensive audits and investigations to identify tax evaders.
Those found guilty of tax evasion risk prosecution, having their personal identification numbers (PINs) disabled, and having their merchandise at the Port of Mombasa blocked and/or seized. However, the KRA has promised to be lenient with tax cheats and will give them ample time to settle their tax breaches before punishment.
The KRA's revenue target for the year starting July is Sh1.621 trillion, and the agency is under pressure to meet this target. The pandemic has hit the economy hard, and the KRA's failure to meet its tax targets over the last few years has raised concerns about the agency's effectiveness.
