The Kenya Revenue Authority cannot trace money wired into the country from offshore accounts after it offered a reprieve to the money owners.
According to KRA’s statement in March, 16,000 Kenyans had wired Ksh 1.014 trillion back t the country from various offshore accounts.
The government provided Kenyans with a three-year reprieve period from 2016 to move billions tax-free. Also during that time, they wouldn’t need to declare the origin of their wealth or even account for tax arrears from previous years.
Return of stolen money quietly
However, reports indicate that after the declaration, most of the funds stolen from either coffers or the public was wired immediately back into the country unnoticed.
This was after the state cleared the funds allowing the looters to bring money back safely.
While speaking to Business Daily, KRA stated that the seekers only required to declare their repatriate and foreign earned income to the taxman by June 3, 2019.
Failure to do o would see funds repatriated later on or by June 30, 2024, accrue an amount of 10 per cent penalty.
Most of the missing money from Kenya was hidden in countries with limited tax restrictions such as Channel Islands, Liechtenstein, Cyprus, and Switzerland.
Having cleared the funds to come back into the country, the taxman doesn’t have the legal obligation to chase after the money owners who have likely stolen from the state.
Additionally, KRA has entered into a signed agreement with over 130 countries that would help the agency track down the wealth of Kenyans investing abroad.