The Kenya Revenue Authority (KRA) has announced it has began to identify areas where it could utilize blockchain technology for tax administration with the help of the Blockchain and Ai taskforce.
Speaking at the recent 2018 Tax Summit in Nairobi, the authority’s Commissioner for Strategy and Innovation Mohammed Omar said they were in talks with a various stakeholders including telcos, the National Transport and Safety Authority and Kenya Power on how to work together to create a data pool that will be used to nab tax evaders.
A recent report by PricewaterhouseCoopers (PwC) notes that while blockchain is not the cure-all for the tax system, it could be applied in a number of areas to reduce the administrative burden and collect tax at a lower cost, helping to narrow the tax gap.
A blockchain identity platform could be used in everything from tax filing to regulatory enforcement. Corporates, government tax administrations, and tax advisory organisations could all be swept up in the revolution.
China is alsoreportedlyplanning to incorporate blockchain into its tax collection process within the next five years.