Tax­man goes for its cut via di­rect link to IFMIS

The KRA aims at seal­ing rev­enue leak­ages to achieve the Sh1.38 tril­lion tar­get in col­lec­tion for the fi­nan­cial year end­ing next June

The Star (Kenya) - - News - WEITERE MWITA @MwitaMartin

The Kenya Rev­enue Au­thor­ity may have di­rect ac­cess to pay­ments made by the state to var­i­ous sup­pli­ers from next month on com­ple­tion of in­te­gra­tion of iTax with In­te­grated Fi­nan­cial Man­age­ment In­for­ma­tion Sys­tem.

The tax­man said it is in the fi­nal stages of link­ing its elec­tronic tax fil­ing sys­tem, iTax, with the IFMIS – the plat­form through which the govern­ment pays its sup­pli­ers.

“We ex­pect the roll­out to hap­pen any­time now. By the end of this month we should ac­tu­ally be hav­ing that in­te­gra­tion al­ready op­er­a­tional and, of course, we will con­tinue im­prov­ing on it,” KRA com­mis­sioner for sup­port ser­vices Ezekiel Saina said yes­ter­day at the on­go­ing sec­ond An­nual Tax­pay­ers’ sum­mit at the KICC.

The move is aimed at in­creas­ing the col­lec­tion of with­hold­ing VAT and in­come tax from govern­ment’s de­vel­op­ment bud­get stand­ing at Sh809 bil­lion this fi­nan­cial year.

“What­ever the na­tional and county gov­ern­ments are do­ing with any of their sup­pli­ers or who­ever, we will ac­tu­ally see it,” he said. “So we have got the with­hold­ing VAT of 16 per cent which will get into the iTax sys­tem. There­after, we will ex­pect the bal­ance of the tax to be paid by those sup­pli­ers.”

KRA aims at seal­ing pos­si­ble rev­enue leak­ages to achieve the am­bi­tious Sh1.38 tril­lion tar­get in col­lec­tion for the fi­nan­cial year end­ing next June.

The au­thor­ity, which nar­rowly missed its re­vised col­lec­tion tar­get in the last fi­nan­cial year, launched a new In­for­ma­tion Com­mu­ni­ca­tion Tech­nol­ogy Strat­egy.

“We are al­ready shar­ing in­for­ma­tion. Right now we are work­ing to in­te­grate iTax, IFMIS and the Cen­tral Bank of Kenya sys­tem for pur­poses of hav­ing vis­i­bil­ity on the trans­ac­tions tak­ing place in other govern­ment agen­cies and county gov­ern­ments es­pe­cially, ”Saina said.

The com­mis­sioner for le­gal ser­vices and board co­or­di­na­tion Wair­imu Ng’ang’a said the tax­man has no­ticed dis­crep­an­cies at county gov­ern­ments.

“When we look at the monies which they have been given from the na­tional cau­cus vis-a-vis what has been de­clared, there is a big gap, but th­ese are is­sues which we are go­ing to ad­dress through in­te­gra­tion ,” Ng’ang’a said.


KRA board co­or­di­na­tor Wair­imu Ngang’a, Min­istry of ICT sec­re­tary Kather­ine Gi­tau and KRA deputy ICT Com­mis­sioner Ezekiel Saina dur­ing the au­thor­ity’s An­nual Tax Sum­mit in Nairobi yes­ter­day

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