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Kenya Announces Enforcement Policies In 2020 Budget

Tuesday, March 17, 2020

In its 2020 Budget Policy Statement, Kenya's Government announced a number of ongoing tax enforcement and administration initiatives, aimed at boosting collections and voluntary compliance rates.

The Government said it is increasing the use of third-party data to check taxpayers' affairs and highlight potentially non-compliant taxpayers and also using this data to improve the tax agency's services.

In the area of border tax evasion, it is introducing a new system to improve oversight of imports and better track consignment and has installed scanners at border check points to challenge smuggling.

The Budget Statement says the Government is seeking to identify and eliminate revenue administration gaps and identify and close revenue leakages, including through the use of IT systems and improved oversight of the activities of tax professionals.

In the area of value-added tax, Kenya is looking at new strategies to improve and automate value-added tax collection and administration processes and seeking to better educate taxpayers on VAT rules.

Finally, to improve tax certainty for taxpayers, Kenya is seeking to expedite Tax Appeals Tribunal cases and settle cases currently being heard through Alternative Dispute Resolution.