KRA targets traders in VAT fraudKenya Revenue Authority will take legal action against traders who will fail to provide ‘full and accurate disclosure of all their taxable transactions including Value Added Tax (VAT).’ According to the KRA Commissioner for Domestic Taxes Elizabeth Meyo, the taxman has realised that there are traders eligible to pay Value Added Tax who are falsifying their input VAT claims to evade paying taxes. “Kenya Revenue Authority (KRA) had recently noted an emerging trend where VAT registered taxpayers are reducing their tax liability through falsified input VAT claims in contravention of the VAT Act, 2013 and the Tax Procedures Act,” she said in a statement released on Wednesday. KRA states that it will be focusing on the traders using fictitious invoices, as well as claiming inputs of input taxes from taxpayers not registered for VAT. The KRA said that it will be focusing on those stealing PINs and claiming of input taxes from taxpayers one has not traded with. They will also be claiming input taxes for amounts exceeding those transacted.

Source: Standard Digital March 11, 2020 15:45 UTC