The Kenya Revenue Authority (KRA) Thursday said it was examining Sh22.56 billion worth of outstanding input value added tax (VAT) claims made in the past 18 months for possible fraud after it detected inconsistencies between purchase and sales invoices submitted by traders.
Use of the newly installed VAT auto assessment (VAA) system has flagged out many buyer taxpayers who are claiming input VAT that the sellers have not declared as output VAT, pointing to a possible tax leakage, the taxman said.
