KRA Bets on New System to Curb Tax Leakages

The Kenya Revenue Authority (KRA) is spearheading an electronic payment system housing KRA’s itax, National Social Security Funds (NSSF) online systems, and National Hospital Insurance Fund (NHIF) payments.

According to KRA, the unified payroll will curb tax revenue leakages and reduce the cost of compliance. In addition, the platform is one of KRA’s national integration and monitoring strategy meant to increase tax collection.

Also Read: KRA plans to monitor Mpesa and Online Remittances

Banks and Kenya Power

Besides NSSF and NHIF, KRA is also considering scrutinizing other government institutions such as Kenya Power, NTSA, and property registries. The data-driven compliance approach will enable KRA access data from third parties for accurate estimation of tax value and personal declarations.

In addition, earlier this month KRA said that the Tax Procedures Act compels third parties to share information including banks. On top of that, the agency’s intelligence and strategic operations unit has intensified investigations into financial records of wealthy individuals and companies.

The platform will be rolled out to the first batch of 90,500 employers and progress gradually until the integration of all employers by December.

In this case, KRA hopes to net an additional 3.06 million taxpayers raising the taxpayers base to seven million.

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