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Government and Policy

Report Tax Defaulters And Walk Home With Ksh 500,000

BY Juma · April 10, 2020 08:04 am

Do you know any individual or organization that is subverting tax laws? Simply, do you know any individual or organization that is trying to avoid paying taxes? Report them to KRA and become rich.

The Kenya Revenue Authority (KRA) has set up a new reward program of 500,000 shillings to any member of the public who will give credible information about an individual or organization subverting tax laws.

In other words, KRA is asking you to be a snitch and make money. Simple. The taxman has resorted to this as a measure to reduce cases where people and businesses are avoiding paying taxes leading to massive tax deficiencies.

But you won’t just report and get paid. No. According to the Tax Amendment Bill (2020), the reward is to be given upon the information leading to the recovery of the taxes that might otherwise be lost had you not reported.

“This provision will only apply where KRA has not awarded the informer for the identification of the unassessed duties or taxes or recovery of unassessed duties or taxes,” reads the Bill that is now before Parliament.

According to the Bill, the proposed amendment will provide “an additional incentive for persons to provide information to KRA on tax defaulters.”

READ: KRA Announces 3% Penalty For Late Payment By Nairobi Residents

Kenya Revenue Authority has failed to hit its revenue collection target for years with the blame being on corrupt officials within the system who collaborate with some unscrupulous businesses to avoid paying taxes.

There has been a massive streamlining of operations at KRA with employees receiving new letters of employment, some dismissed and others arrested and charged for corruption.

But will Kenyans really trust KRA and offer to report tax defaulters? How secure will their identity be given that some of the individuals who avoid paying taxes in Kenya are so powerful? Only time will tell.

READ: Tougher Economic Times Ahead As Prices Of Bread, Gas Set Rise

Juma is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it.(020) 528 0222 or Email: info@sokodirectory.com

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