The Kenya Revenue Authority (KRA) has offered Sh500,000 reward to any individuals with information leading to entities or people subverting tax laws.
This, according to KRA is aimed to boost the intensity of the fight against tax evasion that has been rampant in the country.
The Tax Laws Amendment Bill 2020 accounts for the requirements for awards resulting from the recovery of taxes. Currently, the award is only substantial after the given information leads to actual recovery of the unassessed taxes.
For instance, the whistleblowers will be paid 5 percent of the total recovered taxes or a maximum of Sh2 million for the given information.
Read: Taxpayers To No Longer Make Physical Submissions At KRA Offices Over Coronavirus
Ideally, those who aid the KRA officials in the information pocket 1 percent of the taxes recovered or a maximum of Sh100,000.
“The proposed amendment will provide an additional incentive for persons to provide information to KRA on tax defaulters,” the bill reads in part.
It further states, “This provision will only apply where KRA has not awarded the informer for identification of unassessed duties taxes or recovery of unassessed duties or taxes.”
President Uhuru Kenyatta during a presser in November 2018 directed the KRA to intensify their war against tax fraud in the country.
Read Also: Court Bars KRA From Accessing Keroche Breweries Accounts
Following the directive, KRA kept an eye on high profile wealthy people whose lifestyle were not corresponding to the taxes remitted.
Different organizations, individuals and companies were pounced on following details of their bank statements. Among them included billionaire Humphrey Kariuki and Keroche Breweries whose tax fraud cases are still pending in court.
In August last year, it was revealed that out of the 401,306 registered companies, cooperatives and trusts, only 33,426 paid their taxes. This is approximately 8.1 percent of the taxes paid on net income for the financial year 2018/2019.
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