The Kenya Revenue Authority has started the process of deregistering Personal Identification Numbers (PINs) of individuals and firms that have failed to pay taxes.
KRA Commissioner for Domestic Taxes Department Elizabeth Meyo, in a statement seen by Kenyans.co.ke, had given the suspected cheats a deadline of Saturday, June 20, either to settle their arrears or formulate a payment plan.
A report by Business Daily on Tuesday, June 23 indicated that the authority had this week began canceling KRA PINs and disposing of assets of the individuals and companies in question as it seeks to recover Ksh250 billion in tax arrears.
Without KRA PINs, both individuals and firms will have a hard time conducting business in the country as well as scoring employment in companies where the KRA Pin is mandatory.
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"KRA is, therefore, advising all taxpayers with outstanding tax liabilities and have not paid or entered payment plans to do so by 20th of June 2020, failure to which appropriate enforcement measures will be instituted against the outstanding debt.
"The affected taxpayers are advised to get in touch with Tax Service Office in order to settle their tax debts or propose payment plans," read the statement.
The Tax Procedures Act of 2015 empowers the authority to prosecute tax cheats as well as auction their properties and collect duty direct from their suppliers and financial institutions.
After the cancellation, the affected individuals may not be able to register, transfer or license motor vehicles and the registration of businesses in their names may not be possible.
This comes as the agency scrambles to meet its Ksh1.6 trillion target set for the financial year beginning July 1, 2020.
"Following our earlier offer urging for the review of payment plans, KRA wishes to thank all taxpayers who reviewed their plans and have continued to honour them," she further saluted those who had headed the call.
A statement on the KRA Website notes that a PIN may be forcefully deregistered if tax return prepared and filed by the tax agent is false as well as if the individual ceases to satisfy the conditions for licensing as a tax agent.
Other reasons include when an individual stops performing their duties as a tax agent and notifies KRA in writing as well as when a party notifies KRA that they want to stop performing duties as a tax agent.
Individuals can also apply to have their taxes deregistered after providing their elaborate reasons for the move.
