The Kenya Revenue Authority (KRA) has recovered Kshs. 330 Million tax from
various suppliers trading with county governments.
The taxes comprising of Value Added Tax (VAT), Income Tax and Withholding Tax,
was recovered over a period of three years from various suppliers following
investigations by the KRA.
“Kenya Revenue Authority has in the past three years received intelligence reports of
tax evasion by various business entities trading with county governments. Following investigations, some suppliers agreed to pay taxes due while others have been
charged in court. Others have opted to seek redress at the Tax Appeals Tribunal
(TAT) and while some have since engaged the Authority with the aim of settling the
cases amicably as per the provisions of the Tax & Customs Laws. We are confident
that additional taxes shall be recovered from these suppliers”, said the
Commissioner for Investigations & Enforcement David Yego.
The Authority has further established that tax evasion by county suppliers is mainly
done through use of fictitious invoices to inflate costs and failure by County
Governments to submit taxes withheld from the suppliers &employees among other
non-compliance issues like failure to file returns and filing of nil returns even after
earning taxable income.
Further investigations are ongoing in this regard.
“Over the investigative period KRA carried out risk analysis and established that
despite the increase in expenditure by the County Governments on supplies of goods
and services, there was no corresponding increase in tax payments by the suppliers
in terms of Income Tax, Valued Added Tax and withholding taxes”, said Yego