In a notice carried out in the dailies on Monday, May 3, the taxman issued a 30-day ultimatum to all persons eligible to remit Value Added Taxes as well as income taxes.
After the deadline lapses, the authority announced that it would begin the process of deregistering the PIN holders and erasing their data from the national 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,” read the notice in part.
Without KRA PINs, both individuals and firms will have a hard time conducting business in the country as well as scoring employment in companies where the KRA Pin is mandatory.
In the statement, the authority advised the affected individuals 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,” added the statement.
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.
The deregistration exercise is part of KRAs heightened crackdown on tax cheats aimed at raising the country’s revenue to cover this financial year’s budget deficit.
The Tax Procedures Act of 2015 empowers the authority to prosecute tax cheats as well as auction their properties and collect duty direct from their suppliers and financial institutions.
After the cancellation, the affected individuals may not be able to register, transfer or license motor vehicles and the registration of businesses in their names may not be possible.