Tax Alert: Kenyan Revenue Authority Informer Reward Scheme
Tax fraud involves tax evasion, which KRA has interpreted to be any deliberate attempt to illegally obtain a tax benefit. This may include forging books of accounts, failure to register as a tax entity, file tax returns, pay taxes, keep records, obstructing, bribing or impersonating a tax officer or aiding and abetting a tax crime.
Informers may submit information in person or proxy to the KRA. The KRA is in the process of implementing an online anonymous reporting system to enable this.
The Finance Act 2021 amended the KRA Act to increase the maximum reward available to informants, effective 1 July 2021.
- If the information is useful, informers will be rewarded with 1% of the taxes or duties so identified or KES 500,000 million, whichever is less.
- If a case is successful, informers will be rewarded with 5% of the taxes or duties so recovered or KES 5 million per case, whichever is less.