Big companies in Kenya that have been giving false information about their revenue streams to evade paying the right taxes are in for a rude shock. Kenya Revenue Authority will be posting permanent employees in companies to monitor revenue streams.
If the National Assembly will give a go-ahead, most big companies will be compelled to create space where an employee from Kenya Revenue Authority will sit and oversee all the operations in an effort to curb tax evasion. Whether this will work or not, only time will tell.
There is pressure on the tax collector to meet his tax collection targets to help the government meet its budgetary obligations and cut down from the borrowing spree that has seen the national debt ballooning past 6.9 trillion shillings since Jubilee took power.
KRA staff will be stationed in factories producing excise tax-covered goods such as beer, wines, and spirits, cigarettes, mineral water, soft drinks, juices, and airtime.
The staff will also be stationed in the juices, energy drinks, non-alcoholic beverages, and cosmetics such as Delmonte, Kevian Kenya, Jetlak Foods, PZ Cussons, Blue Plastics and Water Co. Ltd, Aviano Limited, Kenafric Industries, Buyline Industries, Biersdorf East Africa, L’Oreal East Africa, and Kenya Tea Packers Limited.
KRA says the move will help it maximize revenue collection and cut down on cases of big companies evading to pay taxes by presenting fake data. “The commissioner may, for purpose of ensuring proper excise control, require a licensee to provide suitable accommodation and equipment in a factory for the authorized officer responsible for excise control at the factory.’
Kenyans are in for a rough ride as the Jubilee government plans to be borrowing at least 104 million shillings per hour for the remainder of President Uhuru Kenyatta’s term in office, leaving Kenyans with a hole that will take generations to fill.
If this will come to pass, then the country will be borrowing at least 2.5 billion shillings per day to help in the implementation of the development projects within its portfolio.