What Is KRA iWhistle and How To Report?

Heared of KRA iWhistle? This is a platform the Kenya Revenue Authority has created to help Kenyans report cases of tax fraud.

According to the KRA website, anyone can report cases of

Tax evation

Failure to pay taxes to the Authority by individuals, organizations, companies, manufacturers etc.
These taxes include:

• Income tax
• Pay as You Earn (PAYE)
• Value Added Tax (VAT)
• Excise Duty
• Import Duty

COMPANY OFFENCES

• The company is withholding PAYE for the employees but does not remit to KRA.
• The company does not declare all their income despite making huge profits in tenders offered by the County Government and State corporations.

Bribery

Bribery occurs when a person dishonestly gives or receives a benefit as an inducement or reward for doing or omitting to do what one is already under duty to do or omit to do.

• Giver: To promise, offer, or give something of value to a person in order to obtain services or gain influence
• Recipient:To receive or demand, or agree to receive or demand a private benefit so as to provide public services/goods.

Fraud

a) Tax Fraud

Occurs when an individual or business entity willfully and intentionally falsifies information on a tax return in order to limit the amount of tax liability.

• Falsification of documents
• Over valuing or under valuing of goods
• Failure to remit revenues
• Maintaining two sets of accounts with the intend to evade tax

Conflict of Interest

A conflict of interest is a situation in which a KRA staff has a private interest in a matter that concerns KRA and he/she fails to disclose the private interest to his employer. It is not an offence if the public officer has disclosed his interest and has been allowed to participate in the decision-making process in accordance with the conflict of interest laws & regulations.
Examples:

• Self-dealing: A KRA staff doing a business with KRA without disclosing e.g. a Customs Officer(s) running a clearing firm(s), or a Revenue Officer(s) who running a tax consultancy firm
• Outside employment: Somebody holding two jobs in which the interest of one job conflicts with the other.
• Family interest: A KRA officer employs a spouse, child, or other close relative or where goods or services are purchased from such a relative or a firm controlled by a relative.
• Gifts: Gifts from “friends” who also do business with the person receiving the gifts (Such gifts may include things of value such as transportation and accommodation).

Abuse of Office

Involves a KRA staff using his/her position to confer a benefit to oneself or anyone else.

Concealment

Means the importation, exportation or carriage coastwise, or the removal from or into Kenya of goods with intent to defraud the customs, or to evade any prohibition of, restriction on regulation or condition as to, importation, exportation, carriage coastwise or removal, of goods.

Diversion of Goods

These are goods which are:
Manufactured for export but are offered for use within Kenya without payment of the duty due thereon.
Examples:

• Vehicles on transit to neighboring countries being diverted for local use
• Goods for transit diverted to the local market
• Good manufactured for export but offered for use within the country e.g. ethanol

How to report on iWhistle

KRA has now listed a well laid out plan on how to make a report on iWhistle.

Here is what you need to provide when making a report on iWhistle:

• Financial Records (profits and loss audited acounts)
• Bank statements
• Bank details, paybill details, till numbers
• PIN number
• Location of the business or offender
• Mobile contacts of the violator

Visit iwhistle.kra.go.ke today to report!

To get started:

• Go to iwhistle.kra.go.ke
• Set up an account by clicking on ‘Report now’ to generate an anonymous ID and password for future use.
• Report the incident and tell your story
• Receive updates on proceedings after verification