• Uhuru said with the launch of the iWhistle, KRA should maintain vigilance against tax evasion schemes orchestrated and designed by professional service providers and financial institutions.
• The iWhistle platform will play a key role in monitoring tax malpractices, fraud, concealment and unethical behaviour by KRA staff.
Image: PSCU
President Uhuru Kenyatta has directed the National Treasury and KRA to increase the informer reward from the current Sh2 million to Sh5 million.
Uhuru on Friday said this, under the Informer Award Scheme, will play a key role in restoring confidence in the tax system.
The head of State said with the launch of the iWhistle, KRA should maintain vigilance against tax evasion schemes orchestrated and designed by professional service providers and financial institutions.
"The iWhistle platform will play a key role in monitoring tax malpractices, fraud, concealment and unethical behaviour by KRA staff. This marks a milestone in entrenching of the good ethos of governance and fight against corruption and tax evasion," Uhuru said.
He said this will ensure that tax evasion or unethical conduct is recorded and confidentially investigated and acted upon.
Uhuru was speaking during the virtual 17th edition of the Taxpayers Day.
"I hereby direct the national treasury and KRA to increase the reward under the Informer award Scheme from Sh2 million to Sh5 million," Uhuru said.
He said though KRA has had an antagonistic relationship with it clients over the years, digitisation of services at the taxman has seen the introduction of itax and m-service app which has played a key role in mending the relationship.
Though the current Covid-19 has seen a reduced level of economic activity, we managed to collect over Sh1.6 trillion in taxes and the growth was impressive," Uhuru said.
He said how the country managed to grow the tax revenue despite hard economic times is a clear indication that without persuasion to pay taxes, the country can achieve much.
"Paying taxes without coercion is key to national development and security. With due to dedication and diligence as a country we can achieve tremendous gains," he said.
Uhuru said moving forward, KRA should step up its fight against smuggling and counterfeits amid efforts to seal all leakages.
He said KRA should be commended for making significant gains in alternative dispute resolution mechanisms that collected over Sh9.6 billion in the 2019-20 financial year.
"It is worth noting that this was a 20 per cent growth in alternative diusp[ute resolution. But this should not also be used to delay payment of taxes that are due," Uhuru said.
Uhuru said KRA should partner with the Attorney General's office to review the legal framework of tax appeal tribunals to ensure tax disputes are resolved in an expedited manner.
Treasury CS Ukur Yatani said the government had put measures in place to cushion Kenyans against adverse Covid-19 impacts.
He said with the stimulus package in place, the country has witnessed a commendable recovery in most sectors.
"Through supported tax policy measures and digital services set to be introduced in January 2021, we anticipate to collect more revenues for the year 2020/2021," Yatani said.
He said the ministry has realigned its operations to match reengineered business models which are being conducted online.