We are not targeting individuals, says tax agency

Kenya’s tax agency, Kenya Revenue Authority (KRA) has refuted accusations that it is targeting certain individuals in its quest to pursue tax cheats.

In statement Thursday morning, the agency said, “On the contrary, KRA has the additional responsibility of trade facilitation under which we support a business environment that is conducive for growth of business, which further results in increased taxes,” urging Kenyans ‘to reject the narrative that KRA is fighting any individual or business. All we desire is that all eligible taxpayers make every effort to pay their rightful share of taxes. We must all contribute in an equitable manner to the development of our Country.”

It said that it was determined to pursue those who have deliberately chosen to evade taxes through various practices including the following;

Failure to disclose fully the income they have earned, mis-statement of expenses to reduce the taxable income and therefore evade taxes, Failure to pay the correct import taxes through concealment of goods, mis declarations and undervaluation among other schemes, Failure to withhold and remit taxes as required by law and any other non-compliance with tax laws.

KRA further said, “It is our intention to ensure that all persons who are required to pay taxes do so for the good of this Country. We shall treat all taxpayers with respect and afford them the desired level of services.”

This comes hot on heels of recent high-profile tax evasion cases pitting owners of liquor firms Africa Spirits and Keroche Breweries in which the two companies are believed to have evaded paying taxes running into tens of billions of shillings, owed to KRA.

Keroche Breweries Chief executive Ms. Tabitha Karanja has termed claims linking her company to a Sh14 billion tax fraud as mere witch-hunt by her competitors aimed at tainting the firm’s image.

In a telephone interview with a local TV station last night, Ms. Karanja said she had not been served with formal papers and had not been reached out to directly by investigators who on Wednesday, led by the Director of Public Prosecution Noordin Haji said had enough evidence linking her and her husband Joseph Karanja Muigai who are both directors of Keroche and the company itself to 10 counts of tax fraud contrary to section 97 (a) and (c) of the tax procedures act, 2015.

Recent moves the gancy said are meant to improve collection by the agency whose collection has grown from Ksh. 201 billion in the year 2002/03 to Kenya shillings 1.58 trillion in the year 2018/19 representing a growth of over 680%. This has enabled the country to continue providing the much-needed services to the Kenyan people. This tremendous growth demonstrates that this Country will significantly reduce reliance on debt if all persons required to pay taxes pay their rightful share of taxes.