- Kenya Revenue Authority is investigating over 400 staff for involvement in VAT fraud.
- The investigation targets fraudulent invoicing and non-remittance of tax.
- Disciplinary actions, including dismissal, will be taken against guilty staff.
- Reforms include reducing officers authorized to approve VAT obligations from 645 to 170.
- Internal oversight is being strengthened and investigations into the missing trader scheme are intensified.
- Over 4,400 suspected shell entities have been identified.
- More than 2,000 firms issued invoices worth Sh19.7 billion but failed to file or filed nil VAT returns.
- 2,354 firms filed returns but did not remit taxes, leading to potential losses.
- The missing trader scheme involves fake companies issuing false VAT invoices.
- KRA is reviewing the VAT status of over 90,000 entities, with 20,000 inactive taxpayers set for deregistration.
- Stricter VAT registration rules have been introduced, including physical verification and enhanced due diligence.
Source: capitalfm.co.ke
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
