PHOTO CREDITS: The Standard
By
DR.TERRA TAIDIMU
The economic stability of a country is heavily reliant on resources mobilised through taxation. Tax revenues keep the economic wheel on the move.
However, tax crimes and related malpractices dent tax collection efforts thereby occasioning substantial loss of government revenue. Tax malpractices are a global and regional pain.
A report by The Africa Initiative dubbed “Tax Transparency in Africa 2020”, for instance, estimates that Africa suffers revenue loss of around $40 to $80 billion every year to tax evasion. This amount can comfortably fund key projects.
Such statistics are the reason authorities are working round the clock to clip tentacles of tax malpractices. The approach adopted by the Kenya Revenue Authority (KRA) is multifaceted and ranges from automation of processes to leverage on intelligence gathering and management. Although automation of processes is key in reducing human intervention, a major breeding ground for malpractices, intelligence gathering and management is a major boost.
A major setback to this process is unwillingness by various stakeholders such as the public to volunteer information to relevant authorities. The failure by members of the public to report tax evasion, corruption and other malpractices has been a concern. According to a survey conducted in 2019 and published in 2020 by Transparency International Kenya, majority of Kenyans do not report corruption cases.
