Safaricom Limited has been compelled by the Kenya Revenue Authority (KRA) to reveal the identities of customers who have closed Lipa Na Mpesa accounts in order to avoid paying taxes.
In recent weeks, KRA has observed a considerable number of firms employing Lipa Na M-Pesa reverting to cash transactions.
Caroline Rotich, Chief Manager Domestic Tax Department, stated during a Media Lab in Nairobi on Tuesday that KRA is working with Safaricom to identify firms that have ceased utilizing Lipa na M-Pesa.
“Many businesses are closing their Lipa Na M-Pesa merchant accounts, Buy Goods, and Pochi La Biashara Tills.” We are working with Safaricom to gather information on such trades that endanger tax compliance efforts.”
“We will also facilitate integration and do follow-ups once we have the information to enhance compliance through our RSA programme,” Rotich went on to say.
According to Rotich, Lipa Na M-Pesa merchant solutions improve tax compliance.