THIRD PARTY DATA FROM KENYA POWER HELPS KRA TO NET TAX CHEATS

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The taxman access to the metering database at Kenya Power has proved effective in nabbing property developers who have been evading taxes, helping recoup millions of shillings in accrued revenue.

Kenya Power database has helped the Kenya Revenue Authority to single out data on persons applying for electricity. The major source of information has led to increased recruitment of landlords into the tax net in recent years.
The link between the KRA system and third-parties such as Kenya Power and commercial banks has helped rope 76,025 landlords into the tax net over the last two and a half years, the agency says.

Additionally, the taxman uses data from commercial lenders, which are required to record Personal Identification Number (PIN) certificates of new clients as part of the Know Your Customer (KYC) checklist, to track tax cheats.
The use of third-party strategies proves to be effective in nabbing tax cheats thereby increasing revenue collection to facilitate self-sufficiency and service delivery to Kenyans. Tax evasion is not only corruption but preventing development. Government departments should continue to use such strategies that will go a long way in curbing tax evasion and corruption.

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