The Kenya Revenue Authority (KRA) has threatened punitive action against Kenyans who fail to file returns as required by law.
In a notice published in the local dailies on Monday, the taxman issued a 30-day ultimatum to all persons eligible to remit Value Added Taxes as well as income taxes to file their returns or lose their Personal Identification Numbers (PINs).
“Kenya Revenue Authority (KRA) would like to notify the public that taxpayers who are registered under the Value Added Tax (VAT) Act, 2013, and the Income Tax Act, CAP 470 Laws of Kenya are required to file their returns under the respective laws.
“Failure to file tax returns, unless the cause is shown to the contrary, the commissioner of the Domestic Taxes shall have their Personal Identification Numbers (PINs) deregistered and cancelled from the KRA system at the expiration of thirty (30) days from the date of this notice,” the notice reads in part.
KRA encouraged the affected individuals to take advantage of its ongoing voluntary tax disclosure program (VTDP) to rationalize outstanding tax payments and meet the filing requirement.
“Taxpayers are also encouraged to take advantage of the Voluntary Tax Disclosure Program and apply, disclose and pay their outstanding liability with a relief on interest and penalties,” added the statement.
Possession of a KRA pin certificate is mandatory in the opening of a bank account, government job applications, and even land registration. Deregistration will be a big blow to Kenyans.
The latest move is part of the taxman’s efforts to meet its revenue targets and save the government from massive borrowing to foot the country’s budget.
January 1, 2021, marked the beginning of the tax return filing season for the 2020 year of income. The deadline for filing the returns is June 30, 2021.