Tax payers will now use a single number in a new raft of changes by Kenya Revenue Authority to the iTax system aimed at encouraging use of online for the tax filing aimed at boosting tax compliance and revenue collection.
KRA is looking to simplify the process to ensure more Kenyans’ are tax compliant. Also, iTax will enable KRA to better understand taxpayer behaviour, which is critical in designing and implementing effective compliance strategies that contribute to the sustainability of the taxation systems.
With the new system, Taxpayers are able to authenticate information such as Personal Identification Number (PIN) or Tax Compliance Certificate (TCC) hence distinguishing fake information from what is genuine. Also, the system will lower corruption and bureaucracy by reducing face-to face interactions.
Citizens will be in a position to receive instant feedback as an acknowledgement to transactions triggered by taxpayers. Among other benefits of the changes in the automated system is promotion of equity, communication with taxpayers, and impediment on tax avoidance and tax evasion.
With the growing trends among corporate firms to trade with only tax compliant organizations, having a tax compliant certificate will give firms a competitive edge when competing for tenders to supply various goods and services.
Since the introduction of iTax in 2013, VAT & PAYE returns filing period has drastically reduced to within 67 and 72 minutes respectively. Even better, the system is capable of providing instant feedback as an acknowledgement to transactions triggered by taxpayers.
The Authority has also set up a comprehensive support network across the country. Currently the support is available at 14 Huduma Centers and five support centers and an additional 21 Huduma centers will be operational by May 2015.
To ensure citizens are conversant with the system, the Authority kicked off iTax training in Nairobi two months ago to encourage members of the public to learn and understand the new iTax platform before the closure of the old system an effort that will enable them file tax returns efficiently.
The training encompassed registration of individuals, Non-Residents, companies on iTax data correction and uploading of certificates on iTax, filling of returns on iTax. The training open to all citizens at no cost aimed to ensure the system is user friendly.