KRA Commissioner-General John Njiraini. [Photo/nation.co.ke]
Illicit cash flows into the country and illegal transfers pricing by companies operating internationally are proving to be a headache for the Kenya Revenue Authority.This is according to the authority's Commissioner-General John Njiraini.
The situation has been compounded by an age defined by globalisation that has seen the intensification of the power that multi-nationals have.Some of these companies have huge amounts of cash that transcend Kenya's Gross Domestic Product(GDP).''We are under siege from multinationals who have perfected the practice of illegal transfer pricing. They have completely lowered their taxable incomes and we are missing a lot from them.'' Njiraini said.
The revelations were made during the third annual tax summit at the University of Nairobi.
Representatives of other tax administration systems also echoed the sentiments. To address the issues, Njiraini said a special.There is also the need for the KRA to shepherd its tax tools to the 21st century.