Court Allows KRA To Spy On Your Bank Accounts, Phones And Computers To Nab Tax Cheats

Taxpayers will be required by law to provide the Kenya Revenue Authority (KRA) with free access to their records, computers and mobile phones after a High Court judge dismissed a suit challenging sections of the tax law that offered KRA access to people’s premises, records and devices.

The suit which had been filed by activist Okiya Omtatah had challenged Sections 57, 58(2), 59 and 99 of the Tax Procedures Act, arguing that the new rules were violating taxpayers’ privacy by offering KRA full access to their dwellings, records and gadgets like computers and mobile phones. The activist described the powers bestowed on KRA as rogue.

Justice Weldon Korir in his ruling pointed out that Mr Omtatah had failed toprovide to the court proof of how the laws were intrusive in pursuit of tax cheats. “There is therefore sufficient and substantial reason for the limitation of the right (to privacy), as it is KRA’s mandate to ensure that all citizens abide by the laws relating to taxes and where they fail to do so, they are properly brought to justice with sufficient evidence to support the allegation,” judge Korir said. “It is obvious why the government collects taxes and why it is important that all taxpayers comply with tax laws.”

The new law gives KRA the power to demand taxpayers produce records and information on their tax debt. “In any proceedings under this part, the burden shall be on the taxpayer to prove that a tax decision is incorrect,” says Section 56, which also states that information provided by the taxpayers will be used against them in court.

The taxman has been spying on bank statements, import records, motor vehicle registration details, Kenya Power records, water bills and data from the Kenya Civil Aviation Authority (KCCA) in pursuit of tax cheats.