KRA Issues Warning To Tax Evaders In New Measures

Times Tower in Nairobi which is the Headquarters of the Authority. According to the Authority’s Commissioner of Investigations and Prosecutions Edward Karanja, all tax evaders will be criminalized as part of the global practice. Photo / Courtesy
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Kenya Revenue Authority has issued a stern warning to tax evaders this financial year saying it is going to take tough measures on them.

According to the Authority’s Commissioner of Investigations and Prosecutions Edward Karanja, all tax evaders will be criminalized as part of the global practice.

The prosecution will be guided by investigations that will be carried out across the five KRA centres in the country to enhance voluntary tax compliance.

In the last financial year ending June2018, KRA prosecuted 223 individuals and expect to prosecute other 600 this year.

“We are sure we will recover tax revenue from over 95 per cent prosecutions,” Karanja said.

The exchequer estimates to collect Sh15 billion in this 2019/2020 year up from Sh10billion htrough the Investigations, Prosecution and Publicity (IPP) strategy. and Sh5 billion collected in 2018/19 and 2017/2018 respectively through the Investigations, Prosecution and Publicity (IPP) strategy.

Karanja added that they working with 11 prosecutors given by Director of Criminal Investigations.

In the 2018/2019, the tax authority collected Sh1.58 trillion, 11.8 per cent growth from Sh1.43 trillion in the previous year.

Some of the tax heads that drove the growth include VAT that grew by 9.8 per cent despite a high average inflation rate of 7.2 per cent.

Corporate tax and customs duty also pushed the rise in revenue.

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