Tighten KRA systems to tame tax evaders

The Kenya Revenue Authority (KRA) is already contacting businesses that are suspected to be evading taxes after more than 1,000 revenue service assistants were deployed to tighten inspection of the less visible sectors.

The increased tax demands reflect the early successes of the possible water-tight inspection for tax purposes by the new enforcement brigade.

However, the higher tax demands are also a reminder that its taxation systems require further tightening. If the recent recruits can unravel within less than three months what has been giving the KRA sleepless nights, there is a big problem somewhere.

Reports have confirmed many times that tax evasion is such a complex reality that manifests in various layers and players, some obviously beyond the reach of junior staff whose only major brief is a manual inspection of records and premises.

While the tax assistants could unearth tax evasion among the hard-to-tax sectors such as the micro-enterprises, we urge the KRA to invest in more sophisticated systems, tools and talent to stop and punish seasoned tax cheats.