The Kenya Revenue Authority (KRA) will pay whistleblowers who out tax cheats as it seeks to tighten the noose on individuals and companies failing to declare due taxes, new bill reveals.
"The Bill seeks to amend the Act to provide for a reward payable to persons who give information resulting in the enforcement of tax laws," says the Tax Laws Amendment Bill 2020.
At present the Act only prescribes a reward for the provision of information leading to the identification and actual recovery of unassessed duties or taxes.
The latest move by the Treasury comes as the taxman, who has perennially missed tax targets, moves to seal revenue leaks against the backdrop of ever higher collection targets set by the government.
The plan comes amid a tightening noose by the taxman on tax cheats.
Faced with the huge task of improving revenue collection, KRA has set eyes on suspected tax cheats and tax avoiders following an order from President Uhuru Kenyatta in November 2018.
As part of the crackdown, KRA is expected to constantly monitor high-networth individuals whose lifestyles are not in tandem with the taxes paid.
The enforcement unit at KRA has sought to do this through various strategies including using databases such as bank statements, import records, motor vehicle registration details, electricity and power bills as well as data from the Kenya Civil Aviation Authority (KCCA) to track potential tax cheats and evaders.
The Treasury has set KRA a target of Sh1.938 trillion in tax and other revenue in the current financial year, up from Sh1.58 trillion last year, from an initial Sh1.81 trillion earlier in that year.
The government is seeking to raise Sh242.2 billion in excise taxes in the 2019/2020 year compared to a target of Sh210.1 billion previously.