Dec 9, 2021

Mawazo Writing Africa

Writing about the main

KRA on the spot as tax default rises by Sh1 trillion in 12 months

Kenyans may have no taxes of Sh 1.04 trillion in a year. paid. This increased the tax amount to 1.5 trillion shutter as of June 30, 2020.

Auditor General Nancy Gathungu has cast doubts that the Kenya Revenue Authority has taken reasonable steps to collect or collect the outstanding revenue Settling debts.

In their latest audit by the tax office for the period June 30, 2020, the auditor announced that the outstanding balance in 2019 was $ 415 billion.

< Gathungu warned that if the strategies implemented by the tax officer fail, the outstanding balance will continue to grow.

“My mind will not be changed on this matter,” said the auditor in her report to Parliament on Nov. 18.

She said the agency headed by Commissioner General Githii Mburu had indicated that the debt review was ongoing and various debt reduction strategies were in progress KRA reported that it improved debt collection and corrected taxpayers’ ledger rections and reconciliations erroneous penalties and interest, as well as the processing of applications for tax exemptions.

KRA is also in the right place because taxpayers are not doing well overpayments, which as of June 30, 2020 amounted to 106 billion Shillings. have risen.

The amount was around Sh 20 billion. higher than in the year ended June 30, 2019, when reimbursement claims were still at 86 billion Shillings.

“Should the agency not receive increased funding from the National Treasury for the payment of approved claims, reimbursement claims will be as stated escalate further, “said Gathungu.

Management had indicated various measures, including reorganization and additional staffing of the reimbursement department, were being taken to speed up the repayment process.

KRA also said, that it has taken steps to resolve system challenges in a timely manner and seek improved funding from the Treasury to pay approved claims.

Gath ungu has also raised concerns that Kenyans may not have received public service services after the Reporting year a tax collection of 37 billion Shs the targeted 1.646 trillion Shr., Which resulted in a shortfall of Sh37.3 billion.

The auditor said the sub-budget was translated into equivalent services budgeted for the public but not delivered to the public.

< p> “So management needs to rethink its revenue-collecting mechanism to ensure revenue-collecting strategies are improved to fill the gap,” said Gathungu.

KRA announced compliance through in October Continue to invest in modern technology to increase tax mobilization efficiency.

The agency also said it will step up its fight against tax evasion to ensure no revenue is lost. to a positive performance in the first quarter of the fin financial year.

The tax officer raised 476 billion Shillings during the period. and thus exceeded his target for July to September by Sh 15 billion.