Kenya- Tax Authority to acquire system for taxpayer intelligence

Kenya’s Tax Authority (KRA) allocates funds for a taxpayer intelligence system to counter tax evasion. The system will employ forensic techniques to uncover hidden financial data from taxpayers’ devices. KRA was an early adopter of digital solutions for e-government, mandating internet-based tax registers for businesses to enable real-time sales monitoring.

The Kenya Revenue Authority (KRA) has set aside Ksh 31.19 million in its budget for the financial year ended June 30 2021 to acquire a taxpayer intelligence gathering system. This is in a bid to mitigate tax evasion from residents who under declare and underpay taxes. The system will use forensic methods to collect information on hidden accounts and records from taxpayers on their electrical gadgets. KRA was among Kenya’s first public agencies to employ digital ID for e-government services. It requires  businesses to acquire internet-based electronic tax registers (ETRs) and connect them to its systems for real-time monitoring of their daily sales.