TSC-employed teachers who do not file their KRA tax returns on time could miss out on their July pay after the revenue authority revealed a penalty for the offense.
The Kenya Revenue Authority (KRA) said that Kenyans who will not have filed their tax returns before the 30th of June risk losing their KRA pins.
For teachers to receive their salaries they must first be taxed and for this, they have to have a KRA pin for the same to be possible.
If their KRA pins are revoked it means that the payment of their pay will be withheld for not paying taxes.
KRA published a new notified persons who did not file their respective tax returns without showing cause could lose their pins after the 30-day window lapsed.
“Failure to file tax returns, unless the cause is shown to the contrary, the Commissioner of Domestic Taxes shall have their personal identification numbers (PINS) de-registered and canceled from the KRA system,” read the notice.
On KRA’s website, they listed 62,727 pins set for de-registration in the coming month.
The pins list that could be potentially be canceled are linked to an estimated 7,107 individual accounts with the rest, a majority, comprising of companies, self-help groups, and schools.
The move to conduct de-registration is part of KRA’s move to enforce compliance with tax returns as stipulated in the 2015 Tax Procedures Act.
KRA has asked taxpayers to utilize the revenue authority’s ongoing voluntary tax disclosure program (VTDP) that shall rationalize outstanding tax payments and meet the requirements for filling.
“Taxpayers are encouraged to take advantage of the Voluntary Tax Disclosure Program and apply disclosure and pay their outstanding liability with a relief on interest and penalties,” added KRA.
The loss of KRA pins is set to have huge ramifications as the KRA PIN is a requirement when opening bank accounts, job applications, and registration of pieces of land.