Kenya Revenue Authority might just be going through your bank transaction details in a bid to crackdown on tax cheats as pressure piles to meet targets.
KRA has been investigating bank accounts as bankers deny that they have been giving out such information without court orders.
However, KRA Commissioner for Domestic Taxes Elizabeth Meyo noted that," Data whether bulk or specific, has often been sought from relevant institutions including banks. Once obtained, the information is treated with strict confidentiality and only for the purpose for which it was sought."
It is to be understood that KRA is using the powers vested upon it by the Tax Procedures Act which grants the taxman powers to order third parties to share data with it.
According to Nikhil Hira who is a tax expert and a director at Bowmans a law firm, KRA has hinged its bank accounts espionage on the Tax Procedures Act, which compels third parties to share information with the taxman.
This has seen the KRA issue agency notices, which have led to the freezing of bank accounts and the order to remit tax directly to the authority from clients’ accounts.
"There have been unprecedented agency notices from the KRA to banks that have seen a number of accounts frozen."A number of businesses have shut following orders from KRA to freeze their accounts. The freeze is making it difficult for firms to source supplies and pay staff," said Hira.
Besides the bank accounts, KRA has been utilizing data from utility firms such as water companies, Kenya Power as well as details regarding motor vehicle registration to catch people who lead a wealthy lifestyle without matching remittances to the taxman.
With the KRA headed by a man who was in charge of the 100-staff strong strategic and intelligence department, it remains to be seen how this approach will lead to increased collection of taxes.
KRA boss Githii Mburu is a man who is on a mission to hit his target and it is a battle that will have many casualties.
In August, billionaire business proprietors; Humphrey Kariuki and the Keroche duo, Tabitha Karanja and Josephat Mungai were apprehended on account of tax evasion.