Kenyan tax authority cracks down on VAT fraud
By the AFREEQUE newsroom, based on Kenyans.co.ke
Kenya’s tax authority is strengthening checks on companies suspected of facilitating fraudulent VAT schemes. It also plans to speed up the registration of verifiable businesses, while suspicious applications will face additional checks, according to commissioner George Obell.
Kenya’s tax authority, the Kenya Revenue Authority (KRA), is strengthening checks on companies applying for VAT registration to identify those that could facilitate fraudulent schemes intended to illegally reduce other companies’ tax liabilities. KRA commissioner for micro and small taxpayers, George Obell, announced the move during a meeting with stakeholders in Machakos, Kenyans.co.ke reports.
The KRA is also reviewing its registration procedures following complaints about delays. George Obell said businesses whose activities can be verified would receive faster processing, while applications containing suspicious elements would undergo additional checks. KRA chair Ndiritu Muriithi has meanwhile called on businesses to better understand their tax obligations.
Under the Tax Procedures Act, businesses found guilty of tax fraud can be penalised twice the amount of tax evaded, according to Kenyans.co.ke.
