This archive report was first published on 20 August 2019.
August 20, 2019
The Kenya Revenue Authority (KRA) has intensified its crackdown on tax evasion, warning agents including employers and suppliers that they will face enforcement actions if they fail to remit taxes on time.
According to Commissioner for Domestic Taxes Elizabeth Odundo Meyo, some taxpayers charged with collecting and remitting agency taxes have been delaying or failing to do so, which is a punishable offense under the law.
“Any person who fails to charge, collect, withhold and remit any agency taxes commits an offence and enforcement action will be taken against such persons without further recourse,” Commissioner Odundo Meyo said in a notice.
Agency taxes are payable by third parties, and the responsibility of the agent is to collect, declare, and remit the taxes to the commissioner within the specified timelines. The taxman has set its sights on sealing revenue leaks, particularly with the backdrop of ever-higher collection targets set by the Treasury.
The Treasury expects the KRA to collect Sh1.938 trillion in tax and other revenue in the current financial year, up from Sh1.58 trillion last year. Employers, property agents, tenants, and banks are among the parties that act as tax agents.
Employers are required to deduct Pay-as-you-Earn tax from employees' salaries and wages and remit the same to KRA on or before the 9th day of the following month. Failure to do so attracts penalties and fines.
