Teachers to miss salary for failing to file KRA tax returns

Teachers employed by Teachers Service Commission (TSC) who fail to file their KRA tax returns risk missing payment for after the taxman escalated its penalty.

Kenya Revenue Authority (KRA) said Kenyans who fail to file their tax returns before the June 30 deadline risk losing their KRA pins.

For teachers to receive their pay it must first be subjected to taxation and for this they must have a KRA pin to make it possible.

If their KRA pins are revoked it means their payment will be withheld for not paying taxes.

KRA published a new notice saying persons who have already failed to file their respective tax returns without showing cause will lose their pins after the lapse of a 30 day window.

“Failure to file returns, unless cause is shown to the contrary, the Commissioner of Domestic Taxes shall have their personal identification numbers (PINs) de-registered and cancelled from the KRA system,” read part the notice.

On its website, the tax collection agency has listed 62,727 pins intended for de-registration in the next one month.

The list of pins set for cancellation are linked to an estimated 7,107 individual accounts with the balance, a majority, comprising of companies, schools and self-help-groups.

The intended de-registration and cancellation of the pins is part of KRA’s move to enforce tax returns compliance as provided for by the 2015, Tax Procedures Act.

KRA has asked tax payers to take advantage of its ongoing voluntary tax disclosure program (VTDP) to rationalize outstanding tax payments and meet the filing requirement.

“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 KRA.

The loss of KRA pins is expected to have detrimental effects as the identification number being a prerequisite to processes such as the opening of bank accounts, jobs applications and even land registration.