The Kenya Revenue Authority, the National Treasury and the Attorney General have been urged to kick start a review of tax review tax laws for efficient collection and administration of revenues.
President Uhuru Kenyatta made the call on Tuesday at a Nairobi Hotel when he presided over the 16th annual taxpayer's luncheon organised by KRA.
"KRA must be empowered to impose greater accountability in terms of fines and liability, for taxes with respect to professional advisers and agents, who provide assistance for or enable the deliberate non-payment of taxes,” Uhuru said.
He also directed the three state agencies to draft a bill and submit it to the cabinet in the next four months to facilitate the reforms required.
The President issued a stern warning against tax evaders saying that the government will not hesitate to punish them.
He said the government won't allow few individuals to continue paying lesser taxes than what they should.
“For far too long, tax evasion has been glorified in Kenya. Far too many Kenyans feel justified in cheating the taxman, in paying less than they should into the public coffers. Yet, despite this behaviour, they still expect world-class roads, quality healthcare and education, and other public services; not appreciating the fact that those public goods and services are paid for out of Tax Revenues,” President said.
He also said that tax evaders will be dealt with decisively and directed relevant state agencies to enforce the law in ensuring tax cheats are punished for their criminal activities.
“In all other cases, and, in particular, where there has been tax evasion or other criminal conduct, the law shall and must follow its natural course,” Uhuru said.
He advised KRA to consider the deployment of alternative dispute resolution mechanisms to assist in the timely resolution of disputes outside of the lengthy and expensive judicial processes.
“There is no need to frustrate an individual who has made minor mistakes. Someone could have made mistakes but sit down and agree. Don’t weaponise KRA... let us not criminalise people,” the President said.
Deputy President William Ruto who was present said the sovereignty of any country is determined by the capability of its citizens to pay taxes to meet its development needs.
Safaricom won the top honours in the large taxpayers' category during the event while Premier Kenya and Paramount Chief led in the mid and small taxpayers categories respectively.
