The post Crypto Transactions To Be Tracked By Kenya’s Tax Authority appeared on BitcoinEthereumNews.com.

Kenya Revenue Authority (KRA) announced its plan to switch its outdated system to a more efficient one as part of its tax system reform. The new system, powered by emerging technologies, is set to track crypto transactions in real time to fight tax evasion and foster a “more transparent” organization. KRA To Track Crypto Transactions In Real-Time On Tuesday, local media outlets reported that Kenya’s revenue authority unveiled its plan to track and tax crypto transactions in the country with its new system. In a document outlining their tax collection strategies for the 2024/2025 financial year, the KRA stated that the reformed system would integrate exchanges and marketplaces to gather transaction details: The system shall integrate with cryptocurrency exchanges and marketplaces to track and record cryptocurrency transactions. It shall capture transaction details, including transaction date, time, type, and value. The move is part of the country’s tax reforms, which aim to expand the tax base and fight tax evasion. The KRA also stated that the “outdated” system has prevented the regulator from tracking and taxing digital asset transactions, which has led to a “significant loss of revenue for the government.” Last week, the Kenyan regulators revealed its plan to use artificial intelligence (AI) and machine learning technology to analyze and detect tax evasion, aiming to improve revenue collection and make it more accurate, efficient, and compliant. Moreover, the KRA cited Section 3 of Kenya’s Income Tax Act, which allows digital asset earnings to be taxed, claiming, “The goal is to have a robust and efficient system that will enable KRA to collect taxes on cryptocurrency effectively and efficiently.” Additionally, they added that developing a system that can track and collect taxes on these transactions has become “increasingly important” for the regulators due to the industry’s adoption rate and potential. The…

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Filed under: News - @ October 16, 2024 8:26 am