The Kenya Revenue Authority (KRA) has issued a public notice that taxpayers who are registered under the Value Added Tax (2013) and the Income Tax Act CAP 470 Laws of Kenya are required to file their returns under the respective laws.
Kenyans who fail to file their returns by in thirty days risk losing their KRA PINs. “Failure to file returns, unless cause is shown to the contrary, the Commissioner of Domestic Taxes shall have their Personal Identification Numbers (PINs) de-registered and cancelled from the KRA system,” read part of the statement released by KRA.
Kenyan taxpayers have also been encouraged to take advantage of the Voluntary Income disclosure Program and apply, disclose and pay their outstanding liability with a relief on interest and penalties.
The intended de-registration and cancellation of the pins is part of KRA’s move to enforce tax returns compliance as provided for by the 2015, Tax Procedures Act.
The first reason given by KRA for deactivating taxpayers’ PINs is failure to submit any VAT monthly returns since registration, for whatever reason. This is irrespective of whether the return has a nil, credit or debit balance. According to the VAT Act (2013), failure to file tax returns is one of the reasons for the cancellation of VAT registration.
On the KRA website, the tax collection agency has listed 62,727 pins intended for de-registration in the next one month (30 days).
The list of pins set for cancellation are linked to an estimated 7,107 individual accounts with the balance, a majority, comprising of companies, schools and self-help-groups.