KRA Tracks Down Rich Sh.250 billion Tax Cheats

The Kenya Revenue Authority detectives have singled out tycoons and companies that are in tax debt of an estimated Sh.250 billion.

The KRA intelligence and strategic operations, which comprises of about 100 investigators has in recent months been investigating the sources of income and the expenditure of wealthy people that are against their tax settlement.

Some of these rich people and companies that have found themselves in the wrong side of the taxman include Humphrey Kariuki and owners of Keroche Breweries Tabitha Karanja and her husband Joseph Karanja. They have been charged in court, where they are facing allegations related to not paying their dues that are running into tens of billions of shillings.

The KRA Commissioner – General, Githii Mburu, last week said that the surveillance of the rich and the companies has revealed the potential to collect 250 billion that remains unpaid to them.

“We already have established and it is in our record (the Sh250 billion). Whenever we profile a company or an individual taxpayer, we look at what they are earning, their sources of income and everything else vis-a-vis what they have declared,” Mr Mburu told the Public Accounts Committee (PAC).

He also added and said that they have profiled and notified the individuals and that KRA is aggressively pursuing business people.

Kenya’s tax revenues for the year to June rose 9.6% compared to last year to Sh.1.49 trillion. However, KRA still missed its collection target by Sh.91.2 billion due to sluggish corporate earnings, reduced economic activity and freeze in hiring amid job cuts.

KRA enforcement unit is using bank statements bank statements, import records, motor vehicle registration details, Kenya Power records, water bills and data from the Kenya Civil Aviation Authority (KCCA), to track down suspected tax cheats.

Those of whom are driving high-end vehicles and have unsettled dues will be identified through their car registration details. The landlords will also be tracked down via Kenya Power meter registrations, of which some of them have huge tax demands.

“There are those who are already in the tax base but don’t pay correct taxes. We have those who have payroll numbers but they don’t declare income from their properties like rent,” said Mr Mburu, adding that the individuals are now on the KRA radar.

KRA’s quest to bring people into the tax brackets and curb tax cheats is fro the purpose of meeting the revenue targets that it has persistently missed in the recent years.

This has now posed pressure upon the Treasury and the Kenya Revenue Authority to widen the tax net and bring down on cheats and companies amid the growing expenditure needs.

The authority has hired a team of auctioneers to help it track properties of individuals and companies who have failed to pay the tax due.