The Kenya Revenue Authority (KRA) has started the exchange of information on the financial dealings by Kenyans in 77 foreign countries amid escalated crackdowns on tax dodgers and recipients of illegitimate wealth.
The taxman said the exchange will apply to information returns from the 77 nations beginning January 1.
“Pursuant to the provisions of Regulation 2 of the Tax Procedures (Common Reporting Standards) Regulations, 2023 and in accordance with the powers conferred upon the Commissioner under the Tax Procedures Act, Cap 469B, the list of Jurisdictions that will apply for the purposes of the Common Reporting Standard (CRS) has been published” KRA said.
“This list is applicable for information returns related to periods beginning January 1, 2025,” it added.
The new list of information exchange countries is, however, shorter than an earlier one published by the National Treasury, which had listed 106 nations. Notable omissions in the latest KRA list include the Cayman Islands, Bermuda, and the British Virgin Islands.
The CRS Regulations, which were signed by then Treasury Cabinet Secretary Njuguna Ndung’u on January 27, 2023, granted the KRA unrestricted access to information on secret bank accounts held by Kenyans in select foreign countries amid stepped-up purges on tax dodgers and beneficiaries of illicit wealth.
Under the rules, all Kenyan banks, trusts, and other resident financial firms, including local branches of non-resident financial institutions, are required to report to KRA information on foreigners’ bank account numbers, names, addresses, residences, Tax Identification Numbers (TINs), date and place of birth, and persons listed as their beneficiaries.
KRA would then share this information with the participating countries, including common tax havens such as Switzerland, Panama, Mauritius, Jersey, and Monaco, and in turn, receive from them information on Kenyans holding bank accounts in their jurisdictions.
Where bank accounts are held by companies, information on registered owners of the entities will be reported. Also to be disclosed is the amount of money held in the accounts or the value of the accounts and their surrender value if insured.
For custodial accounts, the institutions will be required to report the total gross interest, dividends, and income credited to the accounts during the year and proceeds from the sale or redemption of any financial assets credited to the accounts.
The regulations published by the National Treasury also required the financial entities to review all existing accounts with balances of above $250,000 (Sh32.22 million) as of December 31, 2023.
KRA's new list of information reportable institutions includes: Albania, Argentina, Australia, Austria, Azerbaijan, Belgium, Brazil, Bulgaria, Chile, China, Colombia, and the Cook Islands.
Others are Costa Rica, Croatia, Curaçao, Czechia, Cyprus, Denmark, Ecuador, Estonia, Finland, France, Georgia, Germany, Ghana, Gibraltar, Greece, Guernsey, and Hong Kong. Hungary, Iceland, India, Indonesia, Ireland, Isle of Man, Israel, Italy, Japan, Jersey, Kazakhstan, Korea, Liechtenstein, Lithuania, Luxembourg, and Malaysia are also on the KRA. Others are Maldives, Malta, Mauritius, Mexico, Moldova, Monaco, Netherlands, New Zealand, Norway, Panama, Peru, Poland, Portugal, Russia, Rwanda, and Saint Kitts and Nevis. Saint Lucia, San Marino, Saudi Arabia, Seychelles, Singapore, Slovak Republic, Slovenia, South Africa, Spain, Sweden, Switzerland, Thailand, Turkey, Uganda, Ukraine, UK, and Uruguay.
