Revenue authority on spot for failing to collect Sh158bn tax

What you need to know:

  • The outgoing Auditor-General Edward Ouko in his report tabled before the committee indicates that the accuracy of Sh158 billion as at June 30, 2015 could not be ascertained.

  • Appearing before the committee, KRA commissioner-general Githii Mburu told MPs that the authority is currently refining its data on the debts.

The Kenya Revenue Authority (KRA) was on Wednesday hard-pressed to explain why it failed to collect Sh158 billion in the financial year ending June 2015.

The National Assembly’s Public Investment Committee (PIC) criticised the taxman for what it termed as systematic failure that led to the failure of collecting the billions.

The outgoing Auditor-General Edward Ouko in his report tabled before the committee indicates that the accuracy of Sh158 billion as at June 30, 2015 could not be ascertained.

Appearing before the committee yesterday, KRA commissioner-general Githii Mburu told MPs that the authority is currently refining its data on the debts.

“Due to historical challenges with legacy system, data cleaning initiative is in progress to further refine the data,” Mr Mburu told MPs.

The taxman was also on the spot over Sh14 million it irregularly refunded to Ainushamsi Energy Limited as VAT in respect of input tax attributed to zero-rated fuel.

However, audit verification by the auditor -general revealed that the firm did not import any goods, meaning, KRA irregularly paid Sh14 million to a company that did not export anything as claimed.

Committee chairman Abdulswamad Nassir (Mvita) called the move ‘irresponsible’.

“It is unfortunate that KRA did not do due diligence on the company to confirm whether it exports oil or not. If this is just one incident that was flagged by the auditor, what about others that have gone undetected?” he posed.

Kaloleni MP Paul Katana also queried why a company that was not exporting oil was paid.

Kinangop MP Kwenya Thuku termed KRA management as arrogant and disorganised on the way it handled the matter.

Mr Mburu defended himself, saying, he is still new in the office, but will get to the bottom of the matter and provide all the documents needed.