- KRA looks at revamping tax collection
The Kenyan Revenue Authority, KRA has vowed to go after individuals and companies who have refused to file returns in a clean-up exercise to generate more revenue.
The tax body in a statement signed by Evans Nyakango on behalf of the Commissioner of Domestic taxes said that taxpayers who have never submitted a VAT return and those who have systematically filed nil returns would not be allowed to file new or amended VAT returns.
It mentioned that a large number of taxpayers with VAT obligations are registered but are either not filing their monthly VAT returns or consistently filing nil VAT returns. Some of the reasons for this include erroneous VAT obligations, inactive/dormant taxpayers, and closed-down companies.
The existence of these nil and non-filers makes it almost impossible for KRA to keep tabs on the taxpayers’ compliance effectively.
KRA has revealed that its new plan of action is to remove incorrect VAT obligators and approve new VAT entrants on-boarded into the tax register.
It stated that businessmen or companies who sell goods worth over KSh 500,000 are obligated by law to register for VAT submitted on or before the 20th day of the following month. However, an individual who does not file returns on time is required to pay a fine of KSh 10,000 or 5% of the tax due.
Kenyan Revenue Authority: Other Recent Development
As part of efforts to expand the tax base with KRA, the United Democratic Alliance (UDA) leader and winner of the just concluded Presential election, William Ruto is insisting that all Kenyans pay their share of the taxes.
Recently, the President-elect said there will be no exemptions when it comes to tax payment as the rule of law will equalize every Kenyan so that everyone will pay their taxes.
He also mentioned that he is committed to ensuring equal access to opportunities regardless of one’s societal status.
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