KRA Now Seeks To Know Source Of Income From Purchases

Kenya Revenue Authority (KRA) is now going after the people who have bought land but never declared their source of income.

It has now been observed that a number of taxpayers have been receiving text messages from the taxman demanding them to submit documents to support stamp duty paid on assets they bought in the past five years.

The duty is levied on legal instruments such as cheques, receipts, military commissions, marriage licenses, land transactions and shares.

“Dear Esteemed Taxpayer, records held in our office indicate that you purchased the property and paid a stamp duty. An analysis of the returns filed on iTax shows that you filed returns for the years 2019 to 2022. In this regard, we wish to verify your source of funds for the said transaction,” a message from KRA reads.

The revenue agency now wants affected individuals to provide several documents to support the verification process.

It wants copies of sales agreements, financial statements for the period when the property was acquired and bank statements for the affected year.

“You are required to provide the above documents within a week from the date of the notice, failure to which, necessary corrective measures shall be taken including issuing of additional assessments where applicable without further reference to you.”

This directive is also seen to be targeting tax evader such as those making big purchases like high end cars while filing nill returns in annual tax.

It will also affect those who have bought properties through proxies who can’t prove their source of wealth. Something that’s rampant with tenderprenuers.