Taxman should be civil in going after non-compliant landlords

Reports that the Kenya Revenue Authority (KRA) has turned the heat on landlords that have, for long, been collecting rent from tenants but not paying taxes is encouraging as it is disconcerting.

It is encouraging because it is high time that everyone paid their fair share of taxes. For a long time, just a few people have been paying taxes, a situation that has seen them overburdened.

And with the government’s budget getting inflated every financial year, the few taxpayers have been milked to the bone. This even as the taxman has continued to miss its revenue targets every other financial year. The tax bracket needs to be widened so that all taxpayers can share the tax load.

However, the manner in which KRA has gone about it is disturbing to say the least. Cramming up people in small enclosures like criminals, though not illegal, is just unacceptable.

KRA has recently sought to shed its notorious combative approach. We just hope that the pressure to collect more taxes is not driving them back into their dictatorial tendencies. We also understand that the taxman has in recent times resorted to plea-bargaining, but some tax demands, even if they are meant to bring a non-compliant taxpayer on to the negotiating table, are counter-productive. Some people, especially those who are not aware that this is just a gimmick by the taxman to get them into negotiating, will instead go under.

Reports indicate that some landlords from slums have been slapped with a tax debt of Sh1.35 million, accrued in penalties and interest from a principal of Sh263,340.

Working backwards from the 10 percent tax demand, this means that the landlord had been dodging Sh21,945 a month, translating to a monthly rental income of Sh219,450.

Nothing can be far from the truth. For a landlord from the slums, with some 18 semi-permanent units, charges each unit Sh1,000.

Yes, as law-abiding citizens, we applaud KRA for casting the tax net wider but we condemn any strong-arm tactics.