KRA Tax Spies: The Kenya Revenue Authority (KRA) has rolled out a spying program that is aimed at determining if the taxes Kenyans pay match their income and wealth. Already, KRA detectives have identified wealthy individuals and companies that owe it an estimated Sh. 250 billion.
The taxman is using among others banks and Kenya Power imports to tell out Kenyans with alleged tax arrears.
A report that appeared in the Business Daily appears to vindicate this. The report says that the KRA’s intelligence and strategic operations, which has a team of about 100 investigators, has in recent months been investigating rich people’s sources of income and their expenditure against their tax remittances.
“It has also been analysing companies’ financial dealings, especially firms doing business with the government and counties, to unearth tax cheats through matching their payments and income declared to KRA,” says the report.
What to expect if you filed nil returns!
The report on KRA Tax spies reveals that the KRA enforcement unit has been using various databases to pursue suspected tax cheats, “including bank statements, import records, motor vehicle registration details, Kenya Power records, water bills and data from the Kenya Civil Aviation Authority (KCCA), which reveals individuals who own assets such as helicopters. Car registration details are also being used to smoke out individuals who are driving high-end vehicles but have little to show in terms of taxes remitted. Kenya Power meter registrations are helping the taxman to identify landlords, some of who have been slapped with huge tax demands.”
The report further says that some 50 police officers from the Directorate of Criminal Investigations (DCI) have been seconded to KRA to up investigations into tax defaults.
“There has been lots of surveillance from KRA. They want to find out for instance why is one paying a tax of Sh20,000 and driving a high-end Range Rover,” the report quotes Nikhil Hira, a tax expert and director at law firm, Bowmans.