The Kenya Revenue Authority is seeking details of suppliers and contractors hired by county governments in its bid to tighten the noose on individuals and firms evading tax.
Dr Ruth Wachira, the acting commissioner of domestic taxes department, has asked counties to provide KRA with information about entities and firms that they are doing business with.
“We know there are individuals and corporates doing business with county and national government. We need this information to be transmitted to us electronically and be channeled to risk management system to ensure everybody is paying their fair share of taxes,” said Dr Wachira.
Through KRA’s risk management, she said, the agency is able to tell who is not paying totally or those not paying the required amount. She however pointed out that KRA intends to facilitate revenue collection through voluntary compliance.
“...we have the investigation and enforcement department. If we continuously approach you and tell you we have information that you have not been paying the correct amount of taxes, and you fail to comply, then we will take a different kind of action,” said Dr Wachira.
The change of tack forms part of their seventh corporate plan where KRA is targeting to expand its tax base from 3.9 million active taxpayers to seven million by 2021.
Implementation of the seventh corporate plan 2018-2021 is set to cost Sh103 million.
In addition, the taxman is also aiming at working with counties to maximise on the untapped potential in counties to raise more taxes.
Dr Wachira pointed out that KRA has the infrastructure to collect revenue from both national and county governments and when called upon by devolved units to do so, they are up to the task.
Her sentiments come at a time counties are grappling with low revenue collection.
“The constitution also outlines that there should be a single collector of revenue. We are continuing to develop infrastructure to enable us collect revenue from national and devolved units,” she added.
Dr Omar Mohammed, KRA commissioner, strategic innovation and risk management said they will require implementation of fresh strategies focused towards customer service improvement, tax base expansion, combating illicit trade, recourse to data analytics and staff integrity enhancement.