The Kenya Revenue Authority (KRA) plans to switch to an online tax collection process in June, replacing a system fraught with tax evasion loopholes and bribery.

The replacement system, dubbed iTAX, is an integrated web enabled application that provides an automated processing of domestic taxes.

The main objective of the online system is to enhance voluntary tax compliance and reduce ease the burden of paying taxes among taxpayers, say officials.

Kenyan taxpayers are said to be able to fill in their return forms offline and upload them at their own convenience so as to minimise taxation costs using the system.

And officials say more than 20 banks have signed up.

The system which was launched by President Kibaki in October last year has so far had over 150 companies in its pilot stage.

“This is a large number and we anticipate the system will be embraced by all taxpayers as the pilot phase indicates acceptance from those involved,”said Kennedy Onyonyi Senior deputy commissioner of marketing and communication at KRA.

The taxman is facing a herculean task in collecting Sh1 trillion to finance a widening budget and has previously blamed its failure to hit its target on tax evasion techniques by companies and individuals.