KRA to use computer wizards to uncover tax fraud
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KRA intends to use computer wizards to zero in on both physical and digital records of taxpayers in order to catch tax cheats
KRA intends to use computer wizards to zero in on both physical and digital records of taxpayers in order to catch tax cheats.
In order to collect data, including secret accounts and deleted files from taxpayers’ computers, the Kenya Revenue Authority (KRA) aims to train computer auditing specialists.
This was revealed by National Treasury in disclosure to the International Monetary Fund (IMF) that the KRA will by the end of June next year, have trained specialists and equipped them with advanced Microsoft Excel techniques
In an effort to increase taxpayer compliance, the authority will also establish audit quality review teams for each Nairobi Tax Service office by June of the following year.
The use of ‘computer wizards’ is intended at enhancing the capacity of the taxman to zero in on both physical and digital records of taxpayers to ensure they are paying all their dues according to a senior KRA official who declined to be named.
“KRA committed to strengthening regional audit centres to have enough capacity in audits and implementing data-driven compliance risk management measures to ensure every taxpayer is remitting a fair share of taxes,” said the source.
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Most of the evidence KRA gathers during the course of its investigations has become digital such as emails, texts, video, audio, image files, and other transactional data on hard disks, creating the need for computer audit specialists.
The strategies KRA seeks to foil include methods like renaming a file to something innocent or changing its extension to another type of file to hide its content.
Investigations of such crimes, usually require sophisticated data acquisition and mining and analytics.
Apart from training, KRA says it will be strengthening its data analytics capabilities as it trains eyes on reconstructing digital transactions and providing insights into complex dealings. The use of data and analytics will include “implementation of advanced analytics and expert models of fraud detection and risk management.”
KRA’s latest move, added to the plan to set up a digital forensic laboratory, promises to rattle those who have been riding on the digital underworld to evade taxes.
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