Kenya Revenue Authority (KRA) will prosecute 600 individuals this year as it targets to recover Sh15 billion lost in tax evasion scams.
According to KRA investigations and enforcement officials, most of those currently targeted for prosecution are suppliers to counties and the number is an increase from 222 cases prosecuted last year.
Investigations and Enforcement Deputy Commissioner Edward Karanja said most suppliers have not been remitting taxes despite receiving payments from county governments.
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Out of the 600 cases expected to be prosecuted this year, Dr Karanja anticipates a success rate of 94 per cent.
“Tax investigations involve inquiries into the affairs of a taxpayer where the commissioner has reasonable cause to believe that one is in violation of revenue laws,” Karanja said.
KRA now employs various means to obtain information about tax cheats such as using informers, third party information, media, referrals from other agencies and Auditor General’s reports.
Three per cent
Karanja urged individuals with information on entities that evade paying tax will be awarded Sh2 million or three per cent of the total amount being evaded – whichever is higher.
“We require intelligence on tax evasion regarding any malpractice by the unscrupulous taxpayers and their collaborators. The law provides for informer reward after providing actionable intelligence.”
Once an assessment has been conducted, the taxpayer has a right to object the outcome and appeal in court. They can request for Alternative Dispute Resolution where on admission request for plea bargain.
One of the major arrests made by the agency were suspects who had registered more than nine business names and used them to make fictitious invoicing in excess of Sh15.3 billion
