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 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