Editor's Review

Kenya Revenue Authority (KRA) has announced plans to deregister Kenyans who fail to file their returns.

Kenya Revenue Authority has announced that plans are underway to deregister Personal Identification Numbers (PINs) of Kenyans who fail to file their returns.

On a notice distributed on May 3, 2021, the taxman urged all eligible members of the public to file their returns, issuing a 30-day ultimatum.

KRA warned that it will embark on deregistering PIN and erasing data of non-compliant Kenyans from its servers.

"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.

The taxman urged affected Kenyans to take advantage of the Voluntary Tax Disclosure programme and negotiate their mode of payment.

"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," KRA says in the notice.

The programme provides a platform for a taxpayer to disclose tax liabilities that were previously undisclosed to the Commissioner for the purpose of being granted relief of penalties and interest arising from the tax disclosed.

Without a KRA PIN, individuals and companies will not be able to conduct or operate businesses in the country or seek employment where a KRA PIN is mandatory.

The move by KRA adds to a series of enforcement measures to flush out tax cheats in the country.