- The Kenya Revenue Authority (KRA) on Monday gave taxpayers until June 3 to file their returns or have their PIN registered as part of a larger plan to eliminate tax evaders.
- The taxpayer sues businesses and individual taxpayers, mostly high net worth individuals, who owe him nearly 250 billion shillings.
More than 62,000 people and an unknown number of businesses will be denied access to essential public services as the tax authorities work to punish tax evaders by removing personal identification numbers (PINs).
The Kenya Revenue Authority (KRA) on Monday gave taxpayers until June 3 to file their returns or have their PIN registered as part of a larger plan to eliminate tax evaders. The taxpayer is suing businesses and individual taxpayers, mostly wealthy individuals, who owe him nearly 250 billion shillings.
“Failure to file income tax returns, unless otherwise specified, the Internal Tax Commissioner will have his personal identification number (PIN) deleted and canceled from the KRA system at the expiration of thirty (30) days from the date of this notice. Said the KRA.
This impending write-off of PIN codes could prevent thousands of Kenyans from making critical transactions that require proof of active registration as a taxpayer.
Transactions that require proof of an active PIN certificate include registration of land titles, approval of development plans, registration, transfer and registration of motor vehicles, and registration of trade names and corporations.
Others are the underwriting of insurance policies, customs clearance and reshipment, the payment of deposits for electrical connections, the provision of goods and services to the State, as well as the opening of accounts with institutions. financial.
The 2015 Tax Procedures Act empowers the KRA to deactivate PIN codes, issue travel bans on suspected tax evaders, collect fees directly from defaulting suppliers and bankers, and prosecute those in arrears. .
The KRA, which is under pressure to increase tax collection, seeks to cripple individual taxpayers and businesses to force them to pay their dues.
Intelligence and strategic tax operations have in recent years investigated the sources of income of the rich and their spending in relation to their tax breaks.
He also analyzed the financial transactions of companies, especially those that do business with state and county governments, to find tax evaders by matching their payments and reported income.
The crackdown follows an order from President Uhuru Kenyatta three years ago requiring the KRA to monitor wealthy people whose lifestyle was not in line with the taxes they pay.
The tax authorities have used various databases to prosecute suspected tax evaders, including bank statements, import records and motor vehicle registration details.
The decision to deactivate PIN codes comes months after the KRA rolled out the Voluntary Tax Disclosure Program, under which taxpayers with arrears over the past five years must obtain full or partial relief from penalties and charges. interest on undisclosed taxes.