- KRA PIN
- Introduction to iTax
- VAT on Digital Marketplace Supply
- Filing Returns on iTax
- More about Corporation Tax
- More about PAYE
- Withholding Income Tax
- Refunds Green Channel
- Electronic Tax Invoice
- More about Rental Income Tax
- Stamp Duty
- More about VAT
- More about Withholding Tax
- Betting, Gaming and Lottery Tax
- Advance Ruling
- Everything about Customs
- Customs Public Auctions
- VAT Automated Audit
- Turnover Tax (ToT)
- Income Tax Individual Refund Claims
- Tax Laws (Amendment) 2020
- Tax Assessment
- Taxation of Foreign Income
- Voluntary Tax Disclosure Programme
- Waiver Process
- Exemption (Customs)
- Duty Remission Scheme
- OECD/G20 BEPS Project ( Inclusive Framework )
- Harmonised System (HS) & Common External Tariff (CET)
- The African Continental Free Trade Area (AfCFTA)
- Single Customs Territory (SCT)
- Tax Refunds
- About Capital Gain Tax
- Coordinated Border Management
- Rollout of Excise Stamps on Cosmetics
- Tax Amnesty on Interest & Penalties for periods up to 31st December 2023
- Passenger Terminal Clearance in Kenya
- Learn about eTIMS
- Migrated Legacy System Taxpayer Ledger Balances
- The VAT Auto-Populated Return
What is the purpose of migrating ledger balances from the Legacy System to iTax?
The migration of the ledger balances aims to consolidate taxpayer records and provides the taxpayer with a continuous and complete view of the ledger
How can I view my migrated ledger balances?
Taxpayers can validate their migrated ledger balances by reviewing their iTax Legacy Account available in the Taxpayers’ iTax profile in the General Ledger under the ‘Account Type’ Menu
What are the steps for validating and reconciling migrated Legacy balances?
Taxpayers should -
- Write to their Tax Service Office (TSO) detailing periods of contention and attaching supporting documents.
- The authorized officer will review the documentation; validate the ledger balances, and recommend corrections where necessary.
- Final approval for corrections will be granted by relevant approving officers and the taxpayer will be notified of the adjustments made via their iTax registered email
I made payments during the transition period which have not been updated in my ledger. How do I ensure they are correctly captured in the migrated balances?
Submit to your TSO the reconciliation requests, Payment Registration Number (PRN) slips, bank confirmation letters, and other relevant payment evidence. These documents will assist in validating the date and amount of payments for updating the ledger
What happens if I disagree with the migrated balances?
If there are discrepancies, taxpayers can submit supporting documents on the disputed balances to their TSO. The authorized officers at the TSO will review the documents and communicate the decision to taxpayers via letter or email.
How are adjustments made to the migrated balances?
Corrections such as uncaptured payments, late captures, erroneous self-assessment entries and others will be processed through an automated workflow in iTax. All corrections require necessary approvals before updating in the system.
What if I have overpaid taxes or have a credit balance?
Any validated credit balances that qualify as tax overpayments will be available for utilization in accordance with the provisions of Section 47(1)(a) of the Tax Procedures Act.
How long do I have to review and request corrections to my migrated balances?
Taxpayers have up to 31st December 2024 to review and provide feedback on any discrepancies. After this period, any debit balances remaining shall be transferred to the iTax General Ledger and demand notices issued
What are the different types of adjustments a taxpayer can request to be made on migrated Legacy balances?
Adjustments include -
- Updating payments not captured or captured late;
- Return correction;
- Rectifying self-assessment capturing errors;
- Handling credits migrated; and
- Reconciling un-actioned assessments or refunds.
What happens to VAT credit balances in the Legacy System?
Final VAT credit balances in the Legacy System have not been migrated. This is because taxpayers were given a chance to claim these credits in their first iTax return or request refunds through the specified processes.
How were refunds paid and not posted in the Legacy System addressed?
Refunds processed but not updated in the Legacy ledger were adjusted through debit entries. Any discrepancies in the adjustments will be reversed through a workflow that shall be provided to the taxpayers.
Are there specific documents required for the reconciliation and correction process?
The documents to aid in reconciliation will depend on the reconciliation sought and may vary from taxpayer to taxpayer. The required documents will therefore be agreed upon with the TSO once the taxpayer reports the variances.
What happens if I filed returns in both the Legacy System and iTax during the transition period?
Returns filed in both systems during the transition period have been reconciled to determine the correct last return in the Legacy System. Transactions filed in Legacy System after a taxpayer had filed the first iTax return were disregarded during migration.
How are approved waivers of interest and penalties and excess waivers handled during migration?
Excess waivers issued without corresponding interest and penalties (I&P) were adjusted through debit contra entries to correct the balance. Waivers higher than I&P amounts were similarly adjusted to prevent discrepancies.
How are missing payments made in Integrated Tax Management System (ITMS), Common Cash Receipting System (CCRS) and Direct credits to CBK addressed during migration?
Missing payments made via ITMS and CCRS towards Legacy System assessments were factored in the respective periods during validation and migration of the balances.
For missing payments made through direct remittance to Central Bank of Kenya (direct credits), taxpayers should submit a reconciliation request together with supporting documents for the missing payments (RTGS payment slips/Bank advice slips) for validation and capturing
What happened to unused or unutilized migrated credit vouchers (i.e. vouchers that start with 5020 in iTax)?
Unused migrated credit vouchers were cancelled for fresh migration action (payment or utilization). For utilized credits, adjustments were made to determine the correct balance to be migrated.
What should I do if I believe there are losses not carried forward within a Legacy period during migration?
Taxpayers can request adjustments if they believe losses were not carried forward within a Legacy period. Taxpayers should provide supporting documents and explanations for review and validation by authorized officers
Can I seek a review of the disallowed credits claimed in my iTax returns compared to Legacy System credits?
Yes, taxpayers can seek a review of the disallowed credits claimed in iTax returns compared to Legacy System credits. Correct credits as computed from the Legacy System will be migrated after validation and review.
How have excess payments made towards arrears in the VAT Ledger (PAY 57) been handled during migration?
Excess payments were utilized towards specific VAT liabilities (VAT 57 and VAT 77). Any remaining excess amount was adjusted to reflect the final balance in the Legacy System.
For any clarification on the migrated balances, taxpayers are advised to reach out to their nearest KRA Office or contact us through email address: dtdlegacysupport@kra.go.ke
