KRA to reward whistleblowers on tax cheats, reveals Tax Laws Amendment Bill 2020

The Kenya Revenue Authority (KRA) new tax bill reveals that whistleblowers who expose tax cheats will be rewarded, a move that seeks to tighten the noose on individuals and companies failing to declare due to taxes.

“The Bill seeks to amend the Act to provide for a reward payable to persons who give information resulting in the enforcement of tax laws,” says the Tax Laws Amendment Bill 2020.

This will be a revision of the current Act that only recommends a reward for the provision of information leading to the identification and actual recovery of unassessed duties or taxes.

KRA has perennially missed tax targets and the amendment of the passing of the bill will help in sealing revenue leaks against the backdrop of ever-higher collection targets set by the government.

The authority is also expected to regularly monitor high-net-worth person, whose lifestyles are not in line with the taxes paid, using databases such as bank statements, import records, motor vehicle registration details, electricity and power bills as well as data from the Kenya Civil Aviation Authority (KCCA) to track potential tax cheats and evaders.

KRA a target set by the Treasury this financial year is Sh1.938 trillion in tax and other revenue, up from Sh1.58 trillion in 2019, from an initial Sh1.81 trillion earlier in that year.

The government is seeking to raise Sh242.2 billion in excise taxes in the 2019/2020 year compared to a target of Sh210.1 billion previously.