This archive report was first published on 15 October 2019.
On October 16th and 17th, 2019, the Kenya Revenue Authority (KRA) will host its fifth annual tax summit at the Kenyatta International Conference Centre (KICC). The event, themed 'Tax simplification and digitization for economic transformation,' aims to promote fruitful engagements on tax matters.
According to William Gale, in his 2001 article 'Tax Simplification: Issues and Options' published on Brookings, simplification of tax processes has numerous benefits, including reduced cost of compliance in terms of time, money, and mental anguish.
The KRA has been at the forefront of cracking the brain on the best way to simplify tax administration in Kenya. The annual tax summit provides a perfect opportunity for scholars and members of the public to engage on tax matters and inform important policy decisions.
However, there has been a two-sided coin of perception when it comes to automation of the tax processes. On one hand, automation of tax processes is viewed as a crucial step towards conforming to the contemporary digital era, enhancing efficiency in tax administration.
Flashback to some years back when tax administration was largely manual. It would take inordinately too long to have crucial services delivered. For instance, before implementation of iTax, taxpayers had to visit KRA offices in person to apply for a tax compliance certificate, a process one can now initiate from the comfort of their house or office.
Majority of the sector players are willing to be tax compliant. All they require is facilitation and information on how to do so. KRA is implementing other resolutions arrived at during the previous tax summits for purposes of making tax administration more efficient and at the same time improving the tax payment experience.
Grace Wandera, the Head of Marketing and Communication at KRA, notes that the outcome of this year's Tax Summit will be a landmark input in the transformation journey of tax administration in Kenya.
The outcome of this year's Tax Summit will be a landmark input in the transformation of tax administration.
Grace Wandera, KRA