Tax wars escalate as Ichung’wa orders Treasury for records

National Assembly majority leader Kimani Ichung’wa has given National Treasury Cabinet Secretary Njuguna Ndung’u 14 days to provide a record of tax reliefs, waivers or exemptions granted to individuals and entities by the Jubilee administration since January 2018 to date.

Records of tax incentives given to foreign companies hired by the government to carry out various capital projects during the period are among the requirements listed in a two-page letter to Ndung’u.

Another requirement is the amount of tax that the individuals and entities were obligated to pay had the incentives not been granted.

“This is to request for information on tax reliefs, exemptions or waivers granted by your ministry to an individual, company, firm or institution other than religious or faith-based organisations, educational institutions or charitable organisations,” the letter by Ichung’wa reads.

This, according to the Kikuyu Member of Parliament, occurred after it emerged that not all of the tax incentives provided by the Jubilee government had been reported to the Office of the Auditor-General.

“You cannot use your offices to grant yourselves tax waivers because we know the capital projects that have abused these incentives,” he said.

“The endgame in what I am requesting is to end the impunity culture and abuse of office that was witnessed before. People must pay taxes and we have no reason to target anybody but anyone who abused their offices,” he added.

Article 210 of the Constitution states that no tax or licensing fee may be imposed, waived or varied except as provided by the law.

It also provides that where the law allows the waiver of such a tax or fee, a public record of the waiver and the reason for it should be kept and the same should be provided to the Auditor-General.

Ichung’wa’s move comes amid a heated debate over tax compliance by various leaders in the country.

President William Ruto alongside his deputy Rigathi Gachagua had issued a stern warning to those who were evading taxes and said that they have nowhere to hide.

Their messages, however, have been interpreted as aimed at the Kenyatta family, with former first lady Mama Ngina Kenyatta defending her family from tax evasion allegations.

She asked the government to probe the matter, stating that if her family is found to be guilty, she will not object to having her property attached.