NAIROBI, Kenya July 9 – Buoyed by the sterling performance in the just-ended financial year, the Kenya Revenue Authority (KRA) has decided to go full throttle on high-yield taxpayers to start the year on a high note.
In its unrelenting war on tax evasion, Capital FM News understands that the taxman is keen to purse the prosecution of the Acting Nairobi City County Governor Anne Kananu over a Sh2.1 Billion tax liability.
Reliable sources privy to the investigations at KRA confirmed that the taxman is pursuing the ast recourse to ensure the huge tax arrears are paid, with a possibility of arrest and prosecution unless the money is paid.
Other top County Government officials on KRA’s radar include the Finance CEC Allan Igambi, Finance Chief Officer Halkano Waqo and four other employees who have been obstructing the processing of remittance of taxes, as they quickly facilitate payments to their cronies.
The sources disclosed that it is now all systems-go and it is only a matter of hours before detectives go for Kananu and her team in a sting operation; having failed to remit the taxes even after signing numerous agreements with the taxman to settle the same.
It is understood that Ms. Kananu is working overnight to pay up and avoid arrest to pave way for the assumption of office.
From KRA records, the huge arrears accumulated from the taxes deducted from the employees and suppliers to the County but were not remitted to the government as required by Law. These include Pay As You Earn, Withholding VAT and Withholding Tax, among others.
The suppliers and staff have borne the brunt of the non-remittance of these unpaid taxes since their tax records indicate that they are non-compliant hence cannot access their tax compliance certificates for pensions, jobs elsewhere or consultancy work.
Further to this, the Authority is processing with multiple complaints from employees and suppliers against their employers and procuring entities who withhold taxes and fail to remit to KRA. Some of the suppliers and former employees have reportedly moved to court to compel the County to remit these withheld taxes.
KRA’s focus on the high net-worth individuals and companies seems to have yielded great results and the Authority intends to deploy the generously availed powers to leave no stone unturned in its effort to mobilize revenue to finance government activities. “Tax evasion by one big taxpayer is worth taxes paid by thousands of small and medium taxpayers and the effect is momentous. KRA should not relent.” Said a tax expert who chose to remain anonymous for personal reasons.