Data protection

Data protection

Disclosure for tax purposes

• The Bill suggests changing Section 51 of the Data Protection Act by adding a new paragraph (ba) to subsection (2). This paragraph states that processing personal data is not subject to the Act’s rules if the disclosure is required for assessing, enforcing, or collecting taxes or duties under a written tax law. 

Problem: 

• Possible risks include the misuse of data and violations of privacy rights

• The existing exemptions under Section 51 include scenarios where data processing is necessary for national security, and public interest, or is required by law or court order. 

• intimidation/interference may be seen by tax-collecting entities. 

Committee Recommendations 

• The Departmental Committee on Finance and National Planning has recommended the deletion of the clause that would grant KRA access to personal data without proper judicial oversight.

•  The Committee emphasized that such a provision might not meet the constitutional standards under Articles 31(c) and (d) of the Constitution of Kenya, which protect the right to privacy. 

Alternatives set up by the committee

• The Committee recommended investigating alternative legal frameworks that could define the conditions and safeguards for KRA’s access to personal data, ensuring proper procedures and safeguarding against arbitrary requests. This approach would require a more comprehensive legislative process, distinct from the Finance Bill, to effectively address privacy concerns.