The Kenya Revenue Authority headquarters at Times Towers. PHOTO | FILE
What you need to know:
KRA has to wait longer to access the M-Pesa records crucial in helping the taxman meet annual revenue collection targets.
The taxman will seek proper legal backing to access bank and M-Pesa accounts of taxpayers, deputy commissioner for the domestic taxes department James Ojee said on Thursday.
The decision to seek legal powers is seen as a tactical retreat from the proposal, which has received opposition since its June 8 announcement by Treasury secretary Henry Rotich.
It also means the Kenya Revenue Authority (KRA) has to wait longer to access the M-Pesa records crucial in helping the taxman meet annual revenue collection targets.
Commercial banks, Safaricom and lawyers have criticised the KRA’s bid to access taxpayers’ accounts to catch tax evaders, saying it would amount to a breach of customer privacy clauses in the Constitution, Banking Act, the National Payments Act and the Advocates Act.
“We are not just targeting M-Pesa and bank records. All we want to do is expand the taxpayers’ base and increase revenue collection. Where the law needs to be aligned so that we don’t breach taxpayers’ confidentiality while gathering tax-related information, we will seek amendment but as it is the mission is not malicious, we are simply trying to bring everyone on board for fairness,” said Mr Ojee.
Safaricom, which is the largest mobile money operator, recently objected to the taxman’s quest to gain unfettered access to its customers’ mobile money records.
