The Kenyan tax authorities have identified data on people who have applied for electricity as the main source of information, which has led to an increase in the number of landlords being recruited into the tax network in recent years.
The tax officer says that Access to Kenya Power’s meter database has been shown to be effective in snapping up property developers who evaded taxes and helping reclaim millions of shillings in accrued income.
The link between the KRA system and third party vendors such as Kenya Power and commercial banks have helped bring 76,025 landlords into the tax network in the past two and a half years, the agency says.
The tax officer also uses commercial lender data that is used to record personal identification number (PIN. ) Required) Certificates from new customers as part of the Know Your Customer (KYC) checklist in order to prosecute tax fraud. < / p>
“The use of third-party data has proven its worth in recruiting new landlords,” KRA’s domestic tax officer said Rispah Simiyu via email.
“For example, the Kenya Revenue Authority im Financial year 2019/2020 data from Kenya Power & Lighting Company used to attract 5,542 landlords with rental income of Sh 54 million. to recruit. “
The number of landlords who were added to the tax network at the end of June 2021 has fallen from 36,082 property owners in the previous year to 34,853, says the KRA.
About 5,090 landlords became in the half year to last December.
Changes to the Tax Procedure Act 2015 up to the Finance Act 2016 enabled the KRA to access electronic data on taxpayers from third parties without obtaining a court order.
< p> This includes Kenyan electricity meter records, bank statements, import records, vehicle registration data, water bills and Kenyan Civil Aviation Authority (KCCA) data.
Landlords with annual rental income between Ksh288,000 (USD 2,540) annually / Ksh 24,000 (211 USD) per month and Ksh 15 million (USD 132,333) annually / Ksh 1.25 million (1 1,027) must file a monthly tax return detailing the gross income rent from which the tax at a rate of 10 Percent is calculated.
The tax officer plans to first introduce a block management system in larger cities from Nairobi and Mombasa, supported with spatial mapping technology, in order to take action against tax evading developers.