(Last Updated On: August 11, 2015)
For a long time, Kenyans bank accounts and KRA have operated under different databases hence this has created a loophole where tax evaders can easily evade paying taxes on various incomes they get.
KRA now wants to link its automated taxpayers’ databases to various bank accounts of citizens. The database will cost Ksh765 million and will be known as Data Warehouse and Business Intelligence. This will give a full view of a tax payers financial profile for all income that goes through the formal channels.
Currently detection of fraudulent behavior is hard due to multiple databases. KRA is under pressure to collect more taxes due to the high number of infrastructure projects that have been lined up. In the financial year 2014 – 2015 it collected Ksh1.08 trillion which is 3.86% higher than the previous budget.