KRA Promises Half A Million For Those Who Report Tax Cheats

Whistle blowers who report tax cheats to the Kenya Revenue Authority (KRA) will receive a reward of Ksh500,000, the government has announced.

The Ksh500,000 reward is contained in the Tax Laws Amendment Bill 2020.

“This provision will only apply where KRA has not awarded the informer for identification of unassessed duties taxes or recovery of unassessed duties or taxes. The proposed amendment will provide an additional incentive for persons to provide information to KRA on tax defaulters,” said KPMG in their assessment of the Tax Laws (Amendment) Bill currently before the National Assembly, as quoted by Business Daily.

Those who aid the KRA officials in the information pocket 1 percent of the taxes recovered or a maximum of Ksh100,000.

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Currently, KRA pays informants five percent of the recovered unassessed taxes or a maximum of Ksh2 million following a tip.

KRA has been spying on Kenyans using bank statements, import records, motor vehicle registration details, electricity and power bills to smoke out  tax cheats and evaders. However, little has been achieved.

In August last year, it was revealed that out of the 401,306 registered companies, cooperatives and trusts, only 33,426 paid their taxes. This is approximately 8.1 percent of the taxes paid on net income for the financial year 2018/2019.

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