Kenya launches web-based system to curb tax evasion

Source: Xinhua| 2020-11-07 00:26:44|Editor: huaxia

NAIROBI, Nov. 6 (Xinhua) -- The Kenya Revenue Authority (KRA) on Friday launched a web-based anonymous reporting solution dubbed iWhistle to help curb tax evasion.

The iWhistle solution will enable the public to anonymously report and provide tax crime leads and its launch was one of the highlights at the annual KRA taxpayers' day celebrations in Nairobi.

President Uhuru Kenyatta who virtually launched the web-based system said the system will ensure incidences of tax evasion by taxpayers or unethical conduct by some KRA staff are recorded, investigated and acted upon.

"This will improve the trust and confidence of taxpayers in the tax system as well as allowing the State to dramatically reduce revenue leakage and recover taxes that had been lost," Kenyatta said.

To boost utilization of the iWhistle system, Kenyatta directed the National Treasury and KRA to amend the informer reward scheme so as to increase the reward amount from the current maximum of 2 million shillings (about 18,000 U.S.) to 45,500 dollars.

The online reporting solution will be conveniently accessed through the web link.

"This will improve the trust and confidence of taxpayers in the tax system as well as allowing the State to dramatically reduce revenue leakage and recover taxes that had been lost," Kenyatta said.

The iWhistle solution has been developed as part of KRA's efforts to curb revenue leakages through various tax evasion schemes.

The schemes include failure by taxpayers to pay Customs duty, tax fraud, failure by a taxpayer to submit tax returns by the due date, concealment, mis-declaration, smuggling of goods, manufacturing of counterfeit goods amongst others.

Ukur Yatani, Treasury cabinet secretary said his ministry is working closely with KRA to improve revenue collection by instituting diverse revenue enhancement measures.

Yatani pointed out that implementation of progressive revenue enhancement initiatives has already led to more than double revenue collection since 2013.

"In the just concluded financial year (FY 2019/20), revenue collected amounted to 1.6 trillion shillings, which was a strong performance given the challenges of COVID-19 pandemic," he said.

He expressed optimism that more revenues will be realized as business activities and the general economy pick up, saying the revenue growth will be partly supported by the full implementation of the fiscal and tax policy measures.

Githii Mburu, KRA commissioner-general said tax evasion and other economic crimes impede effective mobilization of domestic financial resources required for national development.

KRA has over the years undertaken various measures to enforce and inculcate a tax-paying culture among taxpayers. Enditem

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