Thursday August 29, 2019-Recently appointed KRA Commissioner General James Githii Mburu is hopeful about the ongoing crackdown on tax evaders.
Two of his most high profile cases have involved Keroche billionaires Tabitha and Joseph Karanja and Humphrey Kariuki of Wow Beverages, all of whom are out on bail.
They are accused of depriving the country of tax amounting to Ksh55 billion combined.
In during an interview, Githii outlined 5 tactics that KRA is using to net tax evaders.
1. Use of highly sophisticated systems
"KRA like any other agency has evolved from being manual. About four years ago, people were paying manual returns. The officials were then tasked to review all files, gather information from financial firms to find out who is evading tax," he disclosed.
2. Looking out for fluctuations and inconsistencies in filed tax returns
"If let's say you paid Ksh10 billion last year and this year you are meant to pay Ksh3 billion, we flag out that too," he stated.
Sometimes the fluctuations in tax returns might have a margin that is so wide and unrealistic, that it raises eyebrows.
3. Intelligence gathering
This is done to complement the system's findings.
Once something that is out of the ordinary has been spotted in someone's returns, KRA deploys intelligence officers on the ground to ascertain the discrepancy.
4. Lifestyle audits
This is done once someone has been flagged by the system.
If one's lifestyle does not match their tax returns, then there is cause for concern. Also, if one does not file taxes, then KRA tries to find out why they didn't.
The Kenyan DAILY POST