Saturday, April 20, 2024

KRA Incorporates a New System To Receive and Analyse Information from More Than 130 Countries To Curb Cross-Border Tax Avasion

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This move comes as part of KRA’s ongoing commitment to enhance international cooperation in tax information exchange.

The Kenya Revenue Authority (KRA) has cast its integrity nets wider as it aims to strengthen its efforts to detect and combat cross-border tax evasion.

The agency intends to incorporate a new system that will receive and analyse information from more than 130 countries.

The new system will facilitate the efficient reception and analysis of data improving the sharing and processing of information with other tax jurisdictions globally.

With a network of over 130 information exchange partners, Kenya stands to benefit significantly from this initiative.

The current challenge faced by the tax authority is the overwhelming volume of data received from its partners.

The manual processing of this data has led to delays in its analysis, ultimately resulting in revenue loss.

The new system will feature the automatic exchange of information and country-by-country reporting, enabling KRA to share essential tax ruling information with both firms and individuals.

Additionally, it will automatically generate email notifications upon receiving data in the Organisation for Economic Co-operation and Development (OECD) common transmission system (CTS).

Moreover, it will enhance tracking, ensuring more efficient and accurate reporting.

The system will not only streamline information exchange but also bolster the security of data transmission and storage between KRA and its global tax partners.

This advanced approach aligns with the tax authority’s efforts to combat tax avoidance schemes, identified as a strategic risk.

The installation of this system is poised to revolutionize KRA’s fight against tax evasion, providing a more effective and secure means of handling data from international partners.

As the world becomes increasingly interconnected, KRA is committed to ensuring that Kenya’s financial operations remain aligned with global tax compliance standards.

This is one of many KRA’s recent measures to curb tax cheats and increase the revenue collection by the taxman.

The tax agency recently deployed military-trained personnel to assist in identifying and addressing tax-related issues.

1,400 officers successfully completed a two-month training program at the Recruits Training College in Eldoret, officially qualifying them as revenue service assistants.

Samuel Musila
Samuel Musilahttps://techknow.africa
Passionate Software Developer and Tech content creator From Nairobi, Kenya

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