Tax Procedure Act 2015 Published

The Tax Procedure Act 2015 has been published and the companies that are used to the evasion of tax payment are in for a rude shock.

From today, the companies that have been using the loopholes in the tax laws to evade paying tax will now pay hefty fine upon being found.

This comes after Kenya Revenue Authority failed to meet its half-year tax target by more than 46 billion shillings, after it failed to meet the same the first half of 2015 by 28 billion shillings.

Before the enactment of this act, Kenya Revenue Authority had no powers to go after those companies that evaded to pay full tax but now the institution has been bestowed with powers to go after such companies.

Early last year, it emerged that some companies were not paying taxes fully as it was required of them by presenting false information but the taxman now has powers to interrogate such companies to establish the truth.

This year the Kenya Revenue Authority put in place mechanisms to make sure that goods imported from other countries do not come into the country without following due procedures. It emerged that most of the tax is wasted at the entry points where most goods are brought into the country without paying the revenue required.

There is no close supervision in all the entry points for instance between Kenya and Uganda making it difficult to track goods coming into the country.

On the other news, the cost of living among most Kenyan households is still high despite the fact that the inflation rate has gone down as compared to last year. Part of the high cost of living has been greatly contributed by the taking effect of the Excise Duty that became operational on 1st of December 2015.

Article by Juma Fred.