KRA interdicts 75 staff for facilitating tax evasion : The Standard

Kenya Revenue Authority (KRA) has interdicted 75 staff suspected of involvement in tax evasion and facilitating access to services through bribery and corruption. According to a notice by the tax collector, “The interdicted employees are accused of facilitating the irregular fraudulent clearance of cargo, fraudulent amendment of tax returns to help taxpayers evade taxes and irregular issuance of tax compliance certificates.” Of those affected, 61 are from Domestic Taxes Department and 14 are from the Customs and Border Control Department. The bulk of the cases (62) touch on staff based in Nairobi. The suspects have been detained for questioning and statement recording, prior to their arraignment in court expected this month.

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Investigations into the rackets have been in progress for four months. Undercover assistance was provided by national law enforcement agencies to trail money and communication. KRA said it will intensify focus on lifestyle audits to undertake up to 50 such audit cases annually. Meanwhile, arrangements are in high gear to implement an electronic Intelligence Gathering System expected to be in place within three months. Last year, KRA sacked 85 officers for engaging in corruption.

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It initiated 15 cases of lifestyle audits, where three have been completed and appropriate action taken to ensure asset recovery and employment termination. The latest development by KRA to interdict its staff is one of its measures to expand its revenue base and minimise tax leakage. On Wednesday, it warned taxpayers against engaging in online businesses and not paying taxes on the transactions. The revenue collector said online traders are required to file and pay taxes, which may include VAT, excise duty, withholding tax, PAYE, corporate taxes and any other tax obligations required under the business. KRA seeks to collect Sh1.61 trillion for the 2018/2019 year. Between July 2018 to March 2019, it collected Sh1.02 trillion leaving it with a Sh585.27 billion gap to fill before June.

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Related Topics

KRACorruptionTax EvasionKenya Revenue Authority