NAIROBI, Kenya, Nov 6 – President Uhuru Kenyatta has directed the Kenya Revenue Authority to amend the informer award scheme and hike the reward amount from Sh2 million to Sh5 million.
Speaking virtually during the launch of the Authority’s new web-based anonymous reporting solution dubbed iWhistle, Kenyatta said the increment would encourage more Kenyans to report tax crimes that have become rampant.
“I also urge KRA and its partners in the multi-agency framework to maintain their vigilance against tax evasion schemes particularly those designed and orchestrated by professional service providers and financial institutions,” Kenyatta said.
KRA developed the new online reporting solution as part of its mission to curb revenue leakages through various tax evasion schemes.
Rampant tax evasion schemes in the country include failure by taxpayers to pay Customs Duty, tax fraud, and also failure by a taxpayer to submit tax returns by the due date.
Others include concealment, misdeclaration, smuggling of goods, and manufacturing of counterfeit goods amongst others.
KRA has over the years undertaken various measures to enforce and inculcate a tax-paying culture among taxpayers.
These include initiatives such as the implementation of the Alternative Dispute Resolution (ADR), mechanisms such as tax tribunal, enhanced litigation (court process), agreed payment plans, engagements with taxpayers through various educational programmes.
Other initiatives include the automation of business processes such as iTax, Integrated Customs Management System, Excise Goods Management System (EGMS) and Regional Electronic Goods Tracking System (RECTS) which are aimed at minimizing human contact which can lead to comprising circumstances between taxpayers and KRA employees.
