In Summary
  • Comprehensive data gathering from government agencies as well as other records officers aligned to individual and company economic activities have been sharing data with the taxman.
  • KRA discussion with telcos who had previously opposed the move citing privacy violations in sharing mobile money transactions details.

Comprehensive data gathering from other government agencies is set to give the Kenya Revenue Authority more muscle in the war against tax evasion and bring more earners into the tax bracket.

Save for telcos who had cited privacy violations in sharing mobile money transactions details, the Nation has learnt that other agencies such as Kenya Power, banks, the National Transport and Safety Authority as well as other records officers aligned to individual and company economic activities have been sharing data with the taxman.

NO ESCAPE

Data on how many electricity meters one owns from Kenya Power is enough to arouse a rental tax demand from KRA while comparing the number of car logbooks one has registered with NTSA with the tax filing of an individual will raise questions should the two fail to make sense.

Doctors who file nil returns will have questions to answer when insurance payout data show they have been making income.

Contractors too have no place to hide with records on projects they register at the National Construction Authority which specifies, among other details, the value of the project and professional fees.

It is now impossible to open a new bank account without a valid KRA PIN and banks have been asking customers to update their PIN details, signalling their entry into the information sharing scheme. Data is making the world too small for tax evasion in Kenya.

The approach, according to KRA officials, makes it easy to harness more taxpayers and targeting specific individuals suspected of ‘misdeclaring’ as efforts to harness revenues for the government enters a new high.

WINNING STRATEGY

KRA chief manager in charge of knowledge management and innovation Cosmas Kemboi told Sunday Nation in an interview that the strategy has been a success for the taxman, particularly on bringing aboard evasive landlords.

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