The war against tax evasion and avoidance in Kenya is dubbed ambitious and has received both condemnation and praise in equal measure.
Nonetheless, government initiatives to combat the vice are bearing fruit as witnessed from revenue collection.
A recent wealth report states that Kenya has about 356 billionaires, placing the country at number four among top wealthy African countries. The AfrAsia Bank report says these individuals have net assets above $10 million (Sh1 billion). The taxman says the report contradicts the actual wealth declared by these individuals.
With this in mind, the Kenya Revenue Authority (KRA) with the support of the multi-agency task force is determined to ensure taxpayers pay their rightful share of taxes.
Other than prosecuting tax evaders, the KRA is also using a robust intelligence network that involves anonymous reporting through ‘i-Whistle’ to curb tax evasion.
The war against tax evasion and avoidance in Kenya is dubbed ambitious and has received both condemnation and praise in equal measure. Nonetheless, government initiatives to combat the vice are bearing fruit as witnessed from revenue collection.
Recent reports show that the government has improved performance rate of 102.6 percent in January and surpassed the month’s revenue collection target by Sh3.53 billion. Since the appointment of Commissioner General Githii Mburu in June 2019, KRA has used all means to go for taxpayers who fail to disclose their full income and those who mis-state expenses.
Taxpayers evade tax in many ways that include non-compliance with tax laws while others evade paying the correct import taxes through declarations and undervaluation.
The fight against tax evasion is championed by none other than His Excellency President Uhuru Kenyatta through a multi-agency approach that has brought together various government agencies to collaborate and enhance the fight against corruption.
The synergy incorporated by these agencies in fighting tax evasion and other graft schemes is enough to ensure that eligible taxpayers make every effort to pay their rightful share of taxes and contribute in an equitable manner to the development of our country. The agencies are pursuing high-profile individuals, who owe the country more than Sh259 billion in taxes.
The taxman has also intensified compliance enforcement by driving the implementation of the new tax measures, including digital service tax, minimum alternative tax and voluntary disclosure programme (VDP).
The VDP seeks to waive interest and penalties for taxpayers who disclose and pay taxes that may not have been declared and paid for the last five years.
Well, the Government has done its part in trying to curb tax evasion. What are you, as a taxpayer doing to stop the menace? Are you equipping yourself with tax knowledge that will help you avoid tax evasion?
One of the sober ways to approach taxation is through tax planning, where one has legally acceptable options to help reduce tax liability.
It is now time for taxpayers to take this burden of curbing tax evasion. Patriotism entails that we protect that which is ours and leads to the development of our nation.
Think about what public funds, collected through taxation have developed. Why wouldn’t we protect the funds by sealing the loopholes of tax evasion?
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Note: The results are not exact but very close to the actual.
