By Mercyline Omware
Traders who fail to make full and accurate
disclosure of all taxable transactions including
Value Added Tax (VAT) shall liable for
prosecution, Commissioner for Domestic Taxes
Ms. Elizabeth Meyo has warned.
The Commissioner said that Kenya Revenue
Authority (KRA) had recently noted an emerging
trend where VAT registered taxpayers are
reducing their tax liability through falsified input
VAT claims in contravention of the VAT Act,
2013 and the Tax Procedures Act.
The Commissioner said that this is a tax crime.
“Registered VAT taxpayers are notified that
falsified return declarations is a criminal
offence and shall not be tolerated”, said the
To address this malpractice, KRA has put
structures in place to mitigate and investigate
the following VAT fraud incidences;
Utilization of fictitious invoices.
Claiming of input taxes from taxpayers not
registered for VAT.
Claiming of input taxes from taxpayers whose
PINs are not migrated to the KRA iTax system.
Claiming of input taxes by one or more
taxpayers using the same invoice details.
PIN theft and subsequent claiming of input
taxes from taxpayers one has not traded with.
Claiming of input taxes for amounts exceeding
Going forward, KRA shall commence a review of
input tax claims for various tax periods and will
take action against any fraudulent cases, which
will include disallowing and/or prosecution of
the affected invoice claims.