KRA recovers Ksh.139 million from hidden offshore assets

The Kenya Revenue Authority (KRA) has recovered an estimated Ksh.139 million ($1.3 million) from the recent uncovering of offshore assets through international cooperation.

The recovery published in the Tax Transparency in Africa 2020 Report follows the scaling up of exchange of information (EOI) treaties signing on the continent over the last five years.

Eight African countries have recovered a combined Ksh.20.1 billion ($189 million) from the treaty which has marked an increased gain in country entries since 2014.

Kenya joined the treaty termed as the Convention on Mutual Administrative Assistance in Tax Matters through the signing of the Yaounde declaration in November 2019.

“At KRA, we are encouraged by the positive and aptly captured outcomes which are as a result of the sustained application of international cooperation and exchange of information tools to tackle illicit financial flow. Countries that are destinations for these flows, including financial centres in Europe, Asia, America, the Caribbean and Pacific, now participate, said KRA’s Commissioner General Githii Mburu.

The initiative is expected to support African countries domestic revenue mobilisation efforts by fighting off illicit financial flows through the tapping of improved global tax transparency and the exchange of tax information.

Kenya is expected to recoup more hidden funds from the initiative as it builds on the effectiveness of the exchange of information.

Globally, tax authorities in nearly 100 countries have marked the recovery of $11.2 trillion in offshore assets from an estimated 84 bank accounts.