DEACTIVATION OF PIN

Take note Taxpayers NOT register on the iTax platform risk having their personal identification numbers (PIN) deactivated by the taxman. Majority of the do not file returns and therefore have not been captured in Tax system KRA claim majority of the tax payers and those with business are not filling annual returns at all or where they file they are filling nil returns despite them operating active business or earning taxable incomes. KRA has warned all tax payers not yet migrated to the ITAX platforms, those who have not filed their annual returns and those filing nil returns risks their PIN being Deactivated. It must be noted that KRA has increased penalties associated with failure to file returns from Kshs 1000 to Kshs 20,000 in addition to paying all taxes dues, interests and penalties. Note that the penalty of not filing returns does not exempt the tax payers from the obligation of paying taxes previously not It must be noted by all Tax payers that government payments systems have been linked to the online tax register and therefore all suppliers and service providers providing or trading with the government can no longer cheat on their tax payable. Its is our humble advice to all person with PIN to monitors their taxes religiously and as they monitor their cash flow to avoid heavy penalties that can cause devastating effect on any individual or organization cash flow. It must be noted by all tax payers on the Tax Procedures Act 2015, where failure to file returns within the deadline is an offence which attracts a Sh10,000 fine or 25 percent of salaried workers’ tax bill, Sh5,000 in case of small and medium sized enterprises which are subject to turnover tax and Sh20,000 or five percent of tax liability on other business incomes.