Online Businesses Threatened As KRA Seeks Tax Evaders

When lawyer Orengo prophesied that the current government would soon be feeding on its children, Kenyans should have clinched as they too were among children being referred to and the time to ax online businesses seem to be near.

With an overwhelming unemployment rate, the majority of the population which happens to be the youth has turned to make a coin or two online, and the government now wants a share of that too.

The Kenyan youth that has resulted in making sales online and shutting down physical shops to help curb the spread of COVID-19 will soon have to shut down if decisions by the Kenya Revenue Authority and the Kenya Copyright Board (KECOBO) are implemented.

KRA first released a notice warning those trading online and were not remitting the Value Added Tax and vowed to take legal action on them.

KECOBO, on the other hand, sent warnings to deejays who were conducting live streams on various social media platforms saying they would be considered just as radios and would require to pay for licensing.

KECOBO has asked deejays live streaming music on online platforms to apply for licensing from the Collective Management Organizations or from the Copyright owners to avoid legal implications.

Online shops risk being sued by KRA for tax evasion which could see many online shops result to closure as being online does not always translate to profits.

Even on the physical platforms, there are big and small shops and so KRA is like to start with the big shops before proceeding to the small ones and the youth should continue with their businesses through trend carefully for nobody knows the day or the hour.

When a business is found to be evading taxes, it is made to pay punitive taxes which could see them lose their businesses or business assets.

The Kenya Revenue Authority has been losing taxes which has been compounded by the closure and cutting down of businesses and its decision to target online businesses is viewed as a desperate attempt to try and fill the void.

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