1. VAT Module 8: Information Technology in VAT Administration
©Dr. Wakaguyu wa-Kiburi (
8/28/2019
Prepared for by Dr. Wakaguyu wa-Kiburi

2. Prepared for www.taxkenya.com by Dr. Wakaguyu wa-Kiburi
Scope
Introduction.
Unauthorized access to computerized tax systems.
Unauthorized improper use of computerized tax systems.
Interference with computerized tax systems.
8/28/2019
Prepared for by Dr. Wakaguyu wa-Kiburi

3. Prepared for www.taxkenya.com by Dr. Wakaguyu wa-Kiburi
Introduction
Refers to any computerized tax system which includes:
Hardware.
Software.
Examples.
Electronics tax registers (ETRs).
Electronic signature devises (ESD).
i-Tax platform.
8/28/2019
Prepared for by Dr. Wakaguyu wa-Kiburi

4. Prepared for www.taxkenya.com by Dr. Wakaguyu wa-Kiburi
Introduction cont’
Laptops,
Desktops,
Accounting software e.g. Quick books, Sage
Enterprise Resources Solutions e.g. SAPs, Oracle etc.
Law effective from 9th June 2005.
All VAT registered traders must buy machines.
ETR machines sold by KRA approved vendors.
8/28/2019
Prepared for by Dr. Wakaguyu wa-Kiburi

5. Prepared for www.taxkenya.com by Dr. Wakaguyu wa-Kiburi
Offences
Three broad categories:
Unauthorized access to computerized tax systems.
Improper use of computerized tax systems.
Interference with computerized tax systems.
8/28/2019
Prepared for by Dr. Wakaguyu wa-Kiburi

6. Unauthorized Access To Computerized Tax Systems
Knowingly and without authority:
Gains access or
Attempts to gain access
…. to any computerized tax system.
If convicted in a Court of law:
Individuals - fine not exceeding kshs 400,000.
- imprisonment not exceeding 2 years.
Corporate body - fine not exceeding kshs 1 million.
8/28/2019
Prepared for by Dr. Wakaguyu wa-Kiburi

7. Improper use of Computerized Tax Systems
Lawful access to a computerized tax system:
knowingly uses or
Knowingly discloses/
… information for a purposes that are not authorized.
If convicted in a Court of law:
Individuals - fine not exceeding kshs 400,000.
- imprisonment not exceeding 2 years.
Corporate body - fine not exceeding kshs 1 million.
8/28/2019
Prepared for by Dr. Wakaguyu wa-Kiburi

8. Interference with Computerized Tax Systems
A person commits an offence when knowingly:
Falsifies any record or information stored in any computerized tax system.
The person will have gained access either:
Illegally or
Legally
8/28/2019
Prepared for by Dr. Wakaguyu wa-Kiburi

9. Interference with Computerized Tax Systems cont’
Damages or impairs any computerized tax systems (note does not have to gain access)
Damages or impairs any duplicate tape, disc or other medium on which any information obtained from a computerized tax system is held or stored otherwise than with the permission of Commissioner.
8/28/2019
Prepared for by Dr. Wakaguyu wa-Kiburi

10. Interference with Computerized Tax Systems cont’
If convicted in a Court of law:
Fine not exceeding kshs 800,000.
Imprisonment not exceeding 3 years.
Or both…fine not exceeding kshs 800,000 and/or imprisonment not exceeding 3 years.
8/28/2019
Prepared for by Dr. Wakaguyu wa-Kiburi