This archive report was first published on 30 October 2019.
As part of its efforts to meet revenue targets, the Kenya Revenue Authority (KRA) has integrated high-tech systems to track cars and properties in real-time. This move is aimed at boosting revenue collection and curbing tax evasion.
The taxman has partnered with various agencies, including Kenya Power, National Construction Authority (NCA), and National Transport and Safety Authority (NTSA), to access real-time data on motor vehicle purchases and property deals.
According to Elizabeth Meyo, KRA commissioner in charge of domestic taxes, the taxman is undertaking system integrations with relevant institutions to facilitate faster access to data. This includes accessing information on luxury car purchases, construction contracts, and register of landlords seeking electricity bill meters for their premises.
With the new system, the taxman will be able to identify individuals who own high-end vehicles but have little to show in terms of taxes remitted, as well as landlords who do not pay taxes. The Kenya Civil Aviation Authority (KCCA) database will also be tapped into to access information on individuals who own helicopters and light aeroplanes.
By the end of June 2020, all businesses will be expected to have installed new electronic tax registers connected through the Internet to KRA's systems, allowing it to monitor all transactions instantly. The Tax Invoice Management System (TIMS) will also be implemented, enabling KRA to have visibility of all business transactions on a real-time basis.
