President Uhuru Kenyatta has directed KRA to conduct an audit on individuals who appear to live lavish lifestyles without paying tax. The President made the remarks at KICC during the launch of the Regional Electronic Cargo Tracking System (RECTS) and The Integrated Scanner Command Centre.
“High net individuals whose lifestyles are not reflective of the taxes that they pay, if any, must be compelled to demonstrate their sources of wealth and to contribute their share of taxes accordingly,” Uhuru said on Wednesday.
The President said the tax regime must support the government’s Big Four aspirations.
” There will be no room for tax evaders in Kenya as we are aligned to mobilize local and foreign investment while leveraging the opportunities therein, Uhuru said.
“As my government advocates for integrity in all aspects, these people must be made to contribute their share of tax accordingly,” he said.
He said the move follows concerns that Kenya’s GDP has outstripped the tax pace.
“The situation has seen few Kenyans carry the burden of many by paying more taxes,” he said.
Uhuru added: “This is the reason we have taken steps to widen tax pace by seeking to implement more taxation and bring more Kenyans in the tax net.”
“KRA must, therefore, leverage benefits National Integrated Management Systems and forge a working relationship with county governments to enhance the collection,” he said.
The President further warned KRA managers against aiding tax evasion saying those found culpable will suffer serious consequences.
He asked the taxman to enhance accountability among those handling taxpayers money by rooting for integrity in the agency’s operations.
“You must also ensure high integrity levels by not abusing the responsibility on you through acts of extortion and complicity with tax evaders,” Uhuru said.
The Head of State further asked KRA to ensure all the fake electronic registers used by the cartels to evade tax payment are dealt with.