• Already directors of two top brewers in the country have been charged with tax evasion totaling to Sh55 billion.
• Mburu said that the taxman will recover the cash through prosecutions and other administrative actions.
Image: COURTESY
It's been three months since James Githii Mburu was appointed as KRA's Commissioner General and promised a "new dawn" in the crackdown against tax evaders in the country.
Already directors of two top brewers in the country have been charged with tax evasion totalling to Sh55 billion.
Keroche Breweries Directors Tabitha Karanja and her husband Joseph Karanja were arraigned last Friday over charges of Sh14 billion tax fraud committed between January 2015 and June 2019.
Business mogul Humphrey Kariuki was arraigned in court on August 11 over Tax evasion and fraud amounting to more than Sh41 billion by Africa Spirits and WoW Beverages in Thika.
In an interview with Citizen TV on Tuesday evening, Mburu said that the taxman will recover the cash through prosecutions and other administrative actions.
"The war goes on. It is not personal, political or economic sabotage. We must recover a whopping Sh250 billion lost through tax evasion in the past two years only," he said.
He attributed the multiple tax evasion arrests to the advanced systems used at the KRA.
"KRA like any other agency has evolved from being manual. About four years ago people were paying manual returns. The officials then were tasked to review all files, gather information from financial firms to find out who is evading tax," he said.
The KRA boss said the system has made it easier to spot tax evaders.
"If the day of filing is on June 20th, the next day we run a report to see who was supposed to have remitted their tax returns tax last year and haven't paid," he said.
Other risk indicators they flag off from the system Mburu said is whether a tax payer's amount paid to the government has reduced over the years.
"If let's say you paid Sh10 billion last year and this year you are meant to pay Sh3billion, we flag out that too," he said.
After they identify the misdemeanour, Mburu said they engage an army of intelligent officers who gather lifestyle audits to supplement the system findings.
After it is confirmed that you are evading tax, they engage you to find out what the problem is.
"Those you have seen us arresting have been engaged by us but it reached a point where they feel they are determined to evade the law and that's when we use the law," he added.
Asked why KRA officials who facilitated the tax evasion were not arrested, the KRA boss said there are two processes of investigation process - an internal and external process.
"The DPP has said the investigation of staff is ongoing and is reviewing the files. If evidence is found against them, they will be arrested and prosecuted," he said.
Mburu said that a lot of businessmen who have not been complying with the law by not paying their rightful share of taxes have come forward to ask for tax payment plans.
"We have no problem when you come to us and tell us to give you a tax payment plan. I want to make paying tax something enjoyable," he said.
He cautioned Kenyans to reject the narrative that KRA is fighting individuals or businesses.
"On the contrary, KRA has the additional responsibility of trade facilitation under which we support a business environment that is conducive for the growth of the business, which further results in increased taxes," the KRA boss reiterated.
"All we desire is that all eligible taxpayers make every effort to pay their rightful share of taxes. KRA is determined to pursue those who have deliberately chosen to evade taxes through various practices."
He said everyone must contribute in an equitable manner to the development of the country.