Tax Highlights

Following the tabling of the Finance Bill, 2023 before the National Assembly on 28^th April 2023, the Cabinet Secretary for National Treasury and Economic Planning (CS) read his budget statement on 15^th June 2023. He outlined a series of tax policy measures for the fiscal year 2023/2024. We summarize these below.

Big Brother will be watching

The CS indicated that the Kenya Revenue Authority (KRA) is in the process of undertaking reforms towards seamless taxation by integrating its systems with taxpayers and businesses. This integration will allow an automatic movement of data through machine to machine based processes, and where appropriate, transition to real-time processing. This transition is aimed at enabling KRA to effectively monitor business transactions with a view to seal revenue leakages through tax avoidance and evasion.

Taxpayers will have to bear the cost and administrative burden of integrating systems with KRA. The data security and privacy issues will also have to be addressed.

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