KRA Offers Sh500,000 Reward to Kenyans Who Report Tax Cheats

Kenya Revenue Authority (KRA) has offered a Sh500,000 reward to any individuals who report tax cheats.

The monetary reward will be given to whistleblowers who forward information about businesses, companies, and individuals that breach tax laws, according to a report by Business Daily.

The new reward is contained in the Tax Laws Amendment Bill 2020 and lowers the threshold for awards leading to the arrest of tax cheats. At the moment, the award is only given if the information leads to the actual recovery of the unassessed taxes.

“The proposed amendment will provide an additional incentive for persons to provide information to KRA on tax defaulters,” the bill reads in part.

It adds: “This provision will only apply where KRA has not awarded the informer for identification of unassessed duties taxes or recovery of unassessed duties or taxes.”

Currently, the taxman pays whistleblowers five percent of the total recovered taxes or a maximum of Sh2 million for the given information. 

Last year, it was revealed that out of the 401,306 registered companies, cooperatives and trusts, only 33,426 remitted taxes.

KRA intensified the war against tax cheats and evaders following an order from President Kenyatta in 2018.

Kenyan tycoon Humphrey Kariuki and Keroche Breweries owners Tabitha Karanja and her husband Joseph Karanja are among high-profile who have since been charged with evasion.

Keroche is accused of evading taxes amounting to Sh9 billion while KRA claims Kariuki evaded taxes totaling Sh41 billion through his liquor companies, WOW Beverages, and Africa Spirits Limited.