Our collection activities primarily focus on taxpayer remittance reconciliations. Presently, the bulk of taxpayer remittances are made through banks (including the Central Bank of Kenya), which in turn provide electronic data transfer to the KRA. Data received in this manner is compared against returns submitted to establish completeness.
Remittances are made through the following means:
- PAYE - the taxpayerâ€™s bank of choice;
- VAT, Excise Duty, Sugar Development Levy, Standards Levy - National Bank, Co-op Bank, Kenya Commercial Bank;
- Stamp Duty, Land Rent - National Bank;
- Corporation Tax, Withholding Tax & Advance Tax - KRA offices.
Documentation to support remittances is available from our offices. Prior to April 2007, returns accompanying remittances were deposited at the respective bank pay-in points. With effect from 1st April 2007, taxpayers are required to submit their returns directly to the KRA as follows:
- Customer service desks at Times Tower, Nairobi;
- KRA field offices/ stations;
- Posta Kenya offices.
Due dates for payment of the various taxes are as follows:
- PAYE - 9th ;
- VAT, Excise Duty, Corporate Installment Taxes, Sugar Development Levy, Standards Levy, Stamp Duty - 20th;
- Corporate Final Tax - End of fourth month after financial year end;
- Land Rent - 31st January with interest at 2% per month thereafter.
Taxes established through assessments are payable within the durations stipulated in law. In the case of a non-disputed assessment, payment is due 30 days after the issuing of an additional assessment notice.
Enforcement action is undertaken to recover taxes due but not paid within the stipulated time frame or that agreed through negotiation. The following methods provided in law may be applied:
A person to whom an agency notice is issued is required to remit monies held on the account of a taxpayer to the KRA. An agent is required to respond within 30 days giving details of funds held. Failure to honour an agency notice constitutes an offence in addition to shifting the tax to the account of the agent.
The Commissioner may recover outstanding tax through forced sale. Distress action is enforced generally by use of court bailiffs/ auctioneers and is usually a last resort measure.
The KRAâ€™s policy requires the prosecution of all cases involving tax evasion which is classified as an economic crime under the Anti-Corruption & Economic Crimes Act. Prosecution is undertaken in conjunction with other law enforcement agencies and is in addition to other recovery measures enumerated above.
WAIVER OF TAX
Waiver of penalties and interest may be accepted in situations where a taxpayer demonstrates extenuating circumstances and has paid the full principal tax. Waivers are granted by the Commissioner (upto sh. 500,000) and the Minister for Finance (amounts exceeding sh. 500,000) upon application by a taxpayer citing justification for the request. Applications for waiver should be addressed to the Commissioner in the prescribed format (see www.kra.go.ke/..xxxxxxxxxxx) for waiver documentation.
WRITE OFF OF TAX
Principal tax may be written off/ abandoned where extreme difficulty is demonstrated and the potential for recovery is insignificant. Approval for write off is granted by the Minister for Finance upon recommendation by the Commissioner.