Banks have now kicked off sharing information about foreign account holders data with the Kenya Revenue Authority (KRA) in a move to compel tax avoidance and beneficiaries of illegal wealth.
On Thursday , some banks took a major step to notify their customers that they had started implementing the common reporting standards (CRS) that will see countries agree to seamlessly share information on taxpayers.
As a result, the Kenya Revenue Authority KRA is also expected to receive similar details on a resident taxpayer with an offshore account.
With those having individual account holders, the banks will share with KRA details such as account balance, the addresses, place of birth , the date of birth,the country or countries of tax residence plus ID numbers.
In addition , now the banks are expected to collect and forward to the KRA information on the place of registration, the entity type as well as the controlling person.
The Treasury Cabinet Secretary signed the Tax Procedures (Common Reporting Standards) Regulations, last year 2023, that require that all Kenyan banks,their trusts plus other financial institutions are to report foreigners’ details to the KRA.
It was further stated that KRA will share this information with 106 signatory countries which include the popular tax havens including;
- Switzerland
- Panama
- the Cayman Islands
- Bermuda
- the British Virgin Islands
- Mauritius
- Jersey
- Monaco.
Equally, the tax authorities in the other signatory countries are in return required to share similar information with the KRA, as a way of enhancing the taxman’s chances of getting its hands on cash hidden in offshore accounts.
Kenya Revenue Authority headquarters in Times Towers.
Image: FILE
Even with this move,some tax experts have cautioned banks and the KRA to always consider safeguarding customer confidentiality in line with the Data Protection Act even as they plan for sharing
Kenya being a signatory to the CRS,the move is targeting to gain access on assets held by Kenyans abroad, more especially companies and individuals that have set up shop in low-tax jurisdictions.
