KRA collections for 2014/15 financial year hit record KES 1 trillion
29 July 2015, 15:05
Nairobi - Kenya Revenue Authority (KRA) collected a record KES 1.001 trillion in taxes last financial year which ended June 30, 2015.
The higher revenue collection was 3.86 percent more than 2013/2014 financial year’s KES 963.8 billion, official data shows.
National Treasury Cabinet Secretary Henry Rotich says in the statement of Actual Revenues and Net Exchequer Issues for the period to June 30 published in the Kenya Gazette last Friday. In July-December 2014, the tax agency netted KES 476.52 billion-a 45.38 percent of the full year target.
This means KES 524.48 billion was collected between January and June, with KES 202.47 billion of that being remitted in May and June as companies and individuals raced to beat the June 30 deadline for tax return filing.
The taxman intensified audits on corporates last fiscal year, having discovered over KES 25 billion in potential taxes from about 60 multinationals that had from 2008 used transfer pricing to declare losses when they had made profits.
Transfer pricing happens when multinationals sell to their parent or subsidiaries abroad at lower prices leading to declaration of lower earnings or even losses, denying KRA billions in tax revenues.
KRA commissioner general John Njiraini on July 1st backed electronic tax surveillance and services through iTax system, and last year’s placing of senior staff on three-year contracts to boost collections.
“If we have already been able to achieve annual growth rate in tax revenue of 15 percent for the last 10 years, we should even see better achievement in the future based on what we have put in place and the action that we are taking to also encourage Kenyans to partner and work with us,” he added.
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