Browsing: tax fraud in Kenya

Digital initiatives intending to streamline tax procedures instituted by the Kenya Revenue Authority (KRA) in 2019 have opened up the door for bad actors to stop the legal transfers of properties held in collateral.

KRA reintroduced in 2014 a 5% tax on the gains achieved when selling land, building or investment shares. It further enhanced the payment of this tax through its online portal i-Tax under the watchful eye of KRA agents to allow or deny exemptions. This, however, has brought chaos and a loophole for unscrupulous players to cheat the system.

Prior to this online system change, buyers and sellers both had the option to pay relevant capital gains tax to KRA, but now the new system restricts the payment of capital gains tax to sellers only.

This means that any individual or business who has a property, including land, buildings, or any appreciating asset that would be subject …