The Kenya Revenue Authority is now reviewing the files of taxpayers who filed nil returns for the year 2018.
The taxman suspects that most people filed nil returns during or towards the deadline to avoid penalties that come with late returns, by opting the nil option which is easier and faster.
Those found to have misrepresented their income by filing nil returns when they actually received taxable income will be expected to file an amendment return declaring the correct state of affairs.
The amendment will then have to be approved by KRA, in the process needing more information from the taxpayer.
Read: Details Of Ksh61 Billion Owed To KRA By Suspended Betting Firms
During the six-month period of filing returns only 3.5 million people had done it, against the nine million targeted taxpayers.
According to reports, KRA will compare the taxpayer’s return against their transactions with third parties using data analytics technology.
The taxman is also planning to come up with an electronic tax register, Tax Invoice Management System (TIMS), to help with tracking tax defaulters.
TIMS system will help KRA track transactions of business entities via checking invoicing process by suppliers at an earlier stage and in some way to link purchases to sales to ensure full disclosure of income by taxpayers.
Taxpayers will also be issued with a Tax Compliance Certificate, but only after scrutiny.
Email your news TIPS to Editor@kahawatungu.com or WhatsApp +254707482874. You can also find us on Telegram through www.t.me/kahawatungu
Email your news TIPS to Editor@Kahawatungu.com — this is our only official communication channel
