In a recently published notice Kenyan Revenue Authority (KRA) said a countrywide verification exercise for the electronic tax registers has began to ensure businesses comply.
“Failure to issue an ETR receipt by a registered VAT taxpayer or failure to obtain an ETR receipt on purchase from a registered taxpayer is an offence punishable under the VAT Act and any goods in respect of which an offence has been committed are liable to forfeiture,” the notice read.
KRA made plans in the past to monitor ETR usage more efficiently by installing remote controlling devices…
The move to track sales on real time basis was announced in April 2013 but has never kicked off and monitoring remains manual, creating loopholes for tax evasion. All ETR machines were expected to be fitted with GPRS-enabled devices by June 2014.
Transactions would be automatically logged into the KRA database and the taxman would single out peculiar trends. New motion has been raised in just recently published tender for Tax Invoice Management System – TIMS.
