KRA introduces real-time tax spying software
KRA rolls out real-time tax spying software in a bid to tighten the noose on tax cheats in line with Ruto's directives
KRA rolls out real-time tax spying software in a bid to tighten the noose on tax cheats in line with Ruto’s directives.
The Kenya Revenue Authority has launched software that can instantly gather transaction data from both people and businesses.
With its most recent action, the taxman may be able to catch more tax evaders who have been avoiding paying the KRA billions of shillings in taxes every year.
President William Ruto has set very ambitious revenue goals for KRA, which he claims has had significant value-added tax leaks.
The country’s value-added tax collection is expected to undergo a change in the upcoming months thanks to the new system known as the Tax Invoice Management System (TIMs).
In several nations, TIMs are attributed to improving tax mobilization.
On Thursday, KRA directed all traders in the country to procure the software and shift their reporting to it.
“KRA informs the public of the commencement of phase two of the Tax Invoice Management System (eTIMs),” KRA said in a public notice.
“This phase will involve rolling out of the software version of the system to provide additional ways of transmitting electronic invoices to KRA on a real-time basis.”
The new system (spying software) has visibility of all invoices issued in real-time or near real-time.
The full rollout is expected to commence from April 2023 with KRA expected to onboard nearly all eligible VAT-registered taxpayers.
Under the new system, anyone doing business in Kenya will need to provide real-time electronic filing of all invoices and transaction data.
Tax reporting will then be embedded into a trader’s transaction workflow.
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KRA bets on the new system to collect information without waiting for taxpayers to file, even at the point of a commercial transaction.
The taxman will be able to make their assessment of the tax due at the transaction point.
KRA has announced the software to facilitate the new system will be provided to taxpayers at no additional cost as a way of helping small and medium enterprises.
Taxpayers will under the deal have an option of using an online portal to issue tax invoices and have the same transmitted to KRA on a real-time basis.
Traders will also have the option of loading the application on their mobile phones through which they will issue tax invoices.
Businesses willing to continue with their current billing system will also get an application to integrate with the new system.
KRA deputy commissioner in charge of medium taxpayers George Obel said the new system will improve compliance with the VAT law through transparency and visibility of transactions.
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