The Fight Against Tax Evasion

Kenya Revenue Authority (KRA) is charged with the responsibility of collecting revenue on behalf of the Government of Kenya. This Revenue is critical in funding service delivery to the citizens of this country and in achieving Kenya’s Transformation Agenda.

Revenue collection has grown from Ksh. 201 billion in the year 2002/03 to Kenya shillings 1.58 trillion in the year 2018/19 representing a growth of over 680%. This has enabled the country to continue providing the much-needed services to the Kenyan people. This tremendous growth demonstrates that this Country will significantly reduce reliance on debt if all persons required to pay taxes pay their rightful share of taxes.

We salute and celebrate the majority of Kenyans who have continued to pay their rightful share of taxes. Their commitment to our shared prosperity will continue to secure the success of our Country and future generations. KRA shall continue supporting them even as they endeavor to comply with tax laws.

We call upon those who have not been complying with the law and therefore not paying their rightful share of taxes to come forward and do so. We encourage them to liaise with KRA offices and Service Centres countrywide. KRA is committed to guiding them in the process of determination and payment of taxes for the greater good of our country.

Kenyans should reject the narrative that KRA is fighting any individual or business. On the contrary, KRA has the additional responsibility of trade facilitation under which we support a business environment that is conducive for growth of business, which further results in increased taxes. All we desire is that all eligible taxpayers make every effort to pay their rightful share of taxes. We must all contribute in an equitable manner to the development of our Country.

KRA is determined to pursue those who have deliberately chosen to evade taxes through various practices including the following; 

  • Failure to disclose fully the income they have earned
  • Mis-statement of expenses to reduce the taxable income and therefore evade taxes.
  • Failure to pay the correct import taxes through concealment of goods, mis-declarations and undervaluation among other schemes
  • Failure to withhold and remit taxes as required by law
  • Any other non-compliance with tax laws

 

It is our intention to ensure that all persons who are required to pay taxes do so for the good of this Country. We shall treat all taxpayers with respect and afford them the desired level of services.

Majority of KRA staff are honest and committed to supporting Kenyans in paying their taxes. We are committed to weeding from our midst those of our staff who abuse the privilege Kenyans have bestowed on us by engaging in corrupt conduct and by failure to provide taxpayers with the desired level of services.

We have set up mechanisms for identifying and investigating staff who aid tax evasion and we are subjecting them to our internal disciplinary processes. We are also working with other law enforcement agencies in ensuring that those of our staff who aid tax evasion are prosecuted jointly with the taxpayers they have aided. We have sought the support of the Directorate of Criminal Investigations in ensuring that all KRA staff who aid tax evasion are promptly investigated and their cases forwarded to the Director of Public Prosecution (DPP). We will also share information on those who have wealth that is not consistent with their known sources of income with the Asset Recovery Agency (ARA) and the Ethics & Anti-Corruption Commission (EACC) for appropriate action.

I wish to thank all taxpayers and all Kenyans for their continued support in Revenue Mobilization and in the fight against tax evasion. This vice enriches a few at the expense of the many of us and it should not be allowed to thrive.

Further details on this matter may be obtained from grace.wandera@kra.go.ke or on Tel: 020-2817042.

 

Commissioner General, Kenya Revenue Authority


PRESS RELEASE 22/08/2019


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The Fight Against Tax Evasion