The Kenya Revenue Authority (KRA) has launched a fresh crackdown on businesses suspected of helping other businesses evade taxes through fraudulent Value Added Tax (VAT) arrangements.
The Authority revealed that some businesses were seeking VAT registration not to meet their own tax obligations but to facilitate schemes deliberately designed to reduce the VAT liabilities of other businesses.
Speaking during a stakeholder engagement in Machakos, Commissioner for Micro and Small Taxpayers George Obell said KRA was tightening scrutiny of businesses seeking VAT registration to identify those involved in suspicious activities.
Obell explained that KRA was also reviewing its registration procedures following complaints from taxpayers about delays, with established businesses expected to benefit from a faster process.
He noted that businesses whose operations could be verified would have an easier time obtaining VAT registration, while those raising concerns would undergo additional checks.
“We have got this feedback from the taxpayers that it takes a long time, and so we have looked at that process to try and make it fairly easier, especially for established businesses,” Obell stated.
“The ones that will take more time are the businesses that we are not sure about, but the ones we are sure about, we are making them easier to be able to get VAT registration and follow up so that you can comply,” he added.
