KRA should tax income from corruption and fraud

National Treasury has for the 2016-17 fiscal year set an ambitious revenue collection target for the Kenya Revenue Authority (KRA). This calls for enhanced tax base and improved revenue administration processes. It's in line with this expectation that the taxman will have to employ the following strategies: the enforcement of the Tax Procedures Act, 2015 (TPA Act) and the widening of the tax dragnet to rope in income from illegal and immoral sources.

The Act aims to actualise the taxation principle of simplicity, with the overarching objective being to harmonise the tax administration process as one way of making tax compliance easier. It brings all the tax procedures in Kenya under one regime, with the exception of minimal specific procedures provided for under the specific tax legislations. It provides a punitive penalty amounting to double the tax avoided for those taxpayers who are guilty of involvement in tax avoidance schemes.