The Kenya Revenue Authority has denied that the reforms introduced in the iTax system will result in the abolishment of the annual tax returns for employment Kenyans who are legally mandated to file their the Pay as You Earn (PAYE) tax.
KRA issues statement after reports of abolishing tax returns for employed Kenyans
An online media outlet had misreported on a new feature introduced in the iTax system that would automatically update taxpayers’ data after employers have filled PAYE.
KRA explained that the annual returns will still be filled between January and June of every year, only that the process has been made easier.
iTax returns to continue as usual
“Please note that the information is wrong. PAYE returns are filed as usual,” KRA said in response to a taxpayer who sought information on the changes.
Employed Kenyans have in the past been forced to seek the services of accountants owing to the technical nature of filing returns on iTax.
However, the new system will have most of the data automatically keyed in and the taxpayer will only have to review and confirm.
According to Kenyan law, failure to file annual returns by the due date attracts a Ksh. 10,000 or an additional tax equal to 5% of the normal tax.
Employers who fail to deduct PAYE from the employee’s salary attract a Ksh. 10,000 fine or 25% of the amount of the tax involved.
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