Posts

KRA Launches eTIMS System for Petrol Stations — Tougher Scrutiny & Broader Impact

Image
  The Kenya Revenue Authority (KRA) has formally rolled out the Electronic Tax Invoice Management System (eTIMS) tailored to the petroleum retail sector, marking a major shift in how fuel transactions are invoiced and monitored nationwide. The initiative has triggered both optimism around improved tax compliance and concerns about cost and operational strain for fuel retailers. What Is the eTIMS Fuel Station System? For petrol stations, the new fuel module integrates forecourt controllers and point-of-sale systems so that every liter sold must be backed by an electronic invoice sent straight to KRA’s database. The system was piloted from 2024 and became mandatory by end of 2025, with more than 500 stations already live. Why KRA Is Pushing eTIMS in the Fuel Sector KRA’s thrust stems from long-standing concerns around tax leakage, invoice fraud, and underreporting of sales — especially in high-volume sectors like fuel retailing. By capturing every sale in real time, the tax authori...
Post a Comment
Read more

Theories of Tax Fraud: A Kenyan Legal Perspective

Image
 Tax fraud remains a persistent challenge for revenue authorities worldwide, and Kenya is no exception. In Kenya, tax fraud encompasses intentional acts to evade tax liabilities, misrepresent financial affairs, and manipulate records to unlawfully reduce tax obligations contrary to the Tax Procedures Act (TPA) 2015 , the Income Tax Act (ITA) Cap. 470 , and the Value Added Tax Act (VATA) Cap. 476 . Understanding the underlying motivations and pathways to tax fraud is central to designing effective compliance interventions. Three foundational theories—the Fraud Triangle Theory (FTT) , Fraud Diamond Theory (FDT) , and the Fraud Pentagon Theory (FPT) —offer analytical lenses for scholars and practitioners alike. 1. Fraud Triangle Theory (FTT) First articulated by Donald Cressey, the Fraud Triangle Theory posits that fraud occurs when three elements converge: pressure , opportunity , and rationalization . In the Kenyan tax context: Pressure often arises from financial str...
Post a Comment
Read more