The Taxman Acknowledges the International Information Exchange Role

The Kenya Revenue Authority (KRA) has welcomed findings in a global report on Exchange of Information for Tax Purposes that now cites Kenya as one of the leading lights currently enjoying the benefits of an international effort to curb illicit financial flows.

The just-published Tax Transparency in Africa 2020 Report, shows that the significant progress has been made in fighting tax evasion and illicit financial flows in Africa, but further efforts needed to support domestic revenue mobilization.

The report, confirms that the upscaling of Exchange of Information (EOI) treaties signing in the continent, eight African countries have secured sh19.2 Billion as additional tax revenues between 2014 and 2019 due to international sources.

This is mainly due to the growing number of countries joining the convention on Mutual Administrative Assistance in Tax Matters.

Kenya signed the Yaoundé Declaration in November last year, the Tax Transparency in Africa 2020 publication confirms that Kenya-through KRA -has managed to identify more than sh.136.5 billion additional taxes arising from its international EOI requests.

KRA Commissioner General Githii Mburu said the report had clearly captured the progress made to curb illicit financial flows following the signing of international protocols focused on improving international tax cooperation through enhanced information sharing among the African Union (A.U.) member states.

“At KRA, we are encouraged by the positive and aptly captured outcomes which are as a result of the sustained application of international cooperation and exchange of information tools to tackle illicit financial flows,” Mburu said.

In Kenya, the report says: “For the first time, Kenya has identified additional taxes as a direct consequence of EOI. EOI has a huge potential for Kenya, and it has been putting sufficient effort to build up an effective EOI program over the past two years. One concrete result is the sending of 19 EOI requests with already USD 1.3 million identified.”

In total, between 2014 and 2019, a group of eight African countries has identified USD 189 million, and it is relevant for African countries as the expenditure needs are significant in the continent.

“The ongoing COVID-19 crisis will completely end any tolerance towards all forms of tax evasion,” said Maria José Garde, Chair of the Global Forum on Transparency and Exchange of Information for Tax Purposes.

Victor Harison, Commissioner for Economic Affairs of the African Union Commission, called on all Member States to participate in the international tax cooperation by implementing financial transparency strategies that fight against illicit financial flows (IFFs), and mitigate tax evasion on the continent.