1. Benefits as a result of integration of the Departments into Domestic Taxes Departments
- The integration has eliminated duplicated of functions, leading to resource savings that can be applied to other critical areas such as automation.
- It has led to enhanced taxpayer compliance and risk assessment given that taxpayers are monitored for all taxes and there is more sharing of information.
- There is better relationship with the clients as they are no longer subjected to separate audits from income Tax and Vat officers. This is due to better co-ordinated approach to tax audits and taxpayers education.
- The management is able to monitor the effectiveness of tax audit and other programmes in totality as opposed to the previous situation where one programme was being performed across different departments.
- Integration has reduced the likely incidence of corruption as a taxpayer is now likely to be audited by a team, not an individual officer from a department.
- Information sharing is possible
2. Drawbacks from integration
- Lack of clear responsibilities
i) Previously, it was possible to place responsibilities for attaining targets on various commissioners be it for customs and excise VAT, Income Tax etc. Variations were easier to spot. Not possible now since all these are integrated into one.
ii) Tax payers do not clearly know who to report to at KRA i.e. whether they fall under Large Taxpayer Unit or otherwise. No clear guidelines.
- Inefficiency may crop in due to increased span of management by the supervisors.
- Loss of jobs for some staff from each of the merged departments. This could lead to apathy in the remaining staff who is not assured of their future jobs hence demoralisation
- Staff will be forced to relearn the operation of the other department that was merged with theirs.
- Lack of specialization because staff will be required to handle a diversity of duties arising from the merged departments
Wilfykil answered the question on February 26, 2019 at 05:22
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