KRA targeting to indict 600 tax evaders in new financial year

KRA targeting to indict 600 tax evaders in new financial year

August 14, 2019 0 By mykenyancareers
KRA ITAX QUEUES - KRA targeting to indict 600 tax evaders in new financial year
The number has more than doubled with 222 cases flagged in the last financial year/KRA

NAIROBI, KENYA, Aug 14-Kenya Revenue Authority is targeting to prosecute 600 tax evaders in 2019/2020 finance year.

The number has more than doubled with 222 cases flagged in the last financial year.

KRA Deputy Commissioner for Investigation and Enforcement Edward Karanja said they have devised a new mechanism that will help catch tax cheats in the new financial year.

“For this financial year, we conduct a prosecution guided investigation so that those people who are not paying taxes know that we will catch up with them we intend to proactively detect, deter and prosecute the tax evaders,” he said.

Majority of the cases reported in the last financial year covered all sectors.

“This is a mix of cases and it touches almost on all sectors, and we are sure we will recover tax revenue from over 95 percent prosecutions,” Karanja added.

The tax collector is now targeting to collect Sh15 billion from filed cases on tax evaders up from Sh 8.5 billion through the Investigations, Prosecution, and Publicity strategy and an additional Sh5 billion collected in 2018/19 and 2017/2018 respectively through the Investigations, Prosecution and Publicity strategy.

Some of the leads will include informers, referrals and other agencies and through reports from the Auditor General and the Public Accounts Committee.

This will be carried out across the five KRA centers of Nairobi, Central, Mombasa, Western and Rift Valley.

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

The exchequer estimates to collect Sh15 billion in this 2019/2020 year up from Sh10 through 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 are working with 11 prosecutors given by Director of Criminal Investigations.

During the 2018/2019 financial year, the tax collector managed to gather Sh1.58 trillion, an 11.8 percent growth from Sh1.43 trillion in the previous year.

The efforts were majorly driven by the implementation of ICMs, integrated cargo scanning solutions, regional electronic cargo tracking system to reduce cargo diversion and uptake of itax system that has increased tax base.

Last year the tax base rose to Sh8million from Sh6.7 million in the previous year.