A group of youths under the auspices of Vision 2030 Youth Entrepreneurs Associate has faulted the Kenya Revenue Authority on how the tax man is handling alleged tax defaulters.
The youths pointed out that treating alleged tax defaulters like criminals is unacceptable and a new more amicable solution should be sought instead.
Speaking during a session with the media on Tax Justice and Illicit Financial Flows, Edward Githaiga, The CEO for Vision 2030 Youth said that the country is losing more revenue collection from the multinational companies and should instead focus on sealing the loopholes.
“KRA should device new methods of collecting dues from those who are alleged to have failed to pay their taxes rather than embarrassing them and treating them like criminals,” said Githaiga.
According to the lobby the taxman is misusing the criminal justice system by hunting down alleged tax defaulters using government agencies like CID and other organs of the government.
They faulted the manner in which Keroche Breweries tax evasion case is being handled pointing out that Tabitha Karanja shouldn’t be treated like a criminal yet there are records to show she has been paying her taxes.
Currently there are about 150 multinational companies cases in the tax tribunal.
Githaiga says that Multinationals are being favoured by the Kenyan taxing system which should at least encourage local investors to set up their businesses.
Kenya loses an estimated Sh639 billion annually in tax evasion by multinational corporations, significantly hampering economic growth according to report of the ‘High Level Panel on Illicit Financial Flows from Africa.’
Tax evasion forms the major part of financial fraud in the country, followed by commercial transactions and criminal activities (money laundering, and drug, arms and human trafficking).
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