Money Markets
KRA commissioner-general John Njiraini. The government aims to increase
tax collections to fund several infrastructure projects. PHOTO | FILE
By DUNCAN MIRIRI
Posted Wednesday, July 29 2015 at 13:44
Posted Wednesday, July 29 2015 at 13:44
In Summary
- (KRA had increased its audits of firms to catch tax cheats and increase collections, the Treasury said in a statement.
- KRA said it had intensified audits on corporate firms during the fiscal year, having discovered over Sh25 billion in potential taxes from about 60 international companies that had from 2008 used transfer pricing to declare losses when they had made profits.
Kenya collected Sh1.001 trillion ($10 billion) in the
fiscal year to end-June, a 3.86 per cent increase from the previous
year, the Treasury said on Wednesday.
The government aims to increase tax collections to fund
several infrastructure projects, including a new railway, and pay for
new local administrative structures created in 2013 under a devolved
system of government to try to hasten rural development.
Analysts however say the government's efforts to
raise more taxes have been curbed by a low level of tax compliance with
unscrupulous businesses and individuals using all sorts of tricks to
dodge taxes.
The Kenya Revenue Authority (KRA) had increased its
audits of firms to catch tax cheats and increase collections, the
Treasury said in a statement.
KRA said it had intensified audits on corporate
firms during the fiscal year, having discovered over Sh25 billion in
potential taxes from about 60 international companies that had from 2008
used transfer pricing to declare losses when they had made profits.
Transfer pricing happens when multinationals sell
to their parent or subsidiaries abroad at lower prices leading to
declaration of lower earnings or even losses, avoiding the payment of
billions in tax revenues, KRA said.
-Reuters-
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