TAX COLLECTION

KRA targets persons not filing returns, collections behind target

In Summary
  • KRA officers to identify taxpayers who have never filed since registration, determine their status to face appropriate measures
  • KRA wants its officers to increase the tax-base collection by 15 percent.
KRA headquarters.
KRA headquarters.
Image: FILE

Kenya Revenue Authority is targeting thousands of Kenyans who have never filed tax returns despite being registered.

“Identify nill-filler and confirm that they are not in active business whatsoever. Make use of the data analysis team to help you in this endeavour,” KRA commissioner for domestic taxes Elizabeth Meyo instructed in a memo.

The move is aimed at addressing a major tax tax target deficit this month.

A memo obtained by the Star shows that the taxman had a Sh 14 billion tax deficit this January which was expected to be collected from individuals in gainful employment through the Pay As You Earn (PAYE).

Meyo said all KRA officers should identify and contact taxpayers who have never filed returns since registration, determine their status (dormant, closed) for appropriate measures. 

 

“Tax flow is expected from 20 January, however we still need to collect Sh 14 billion to meet the PAYE target for the month to be covered by Large taxpayers office, Medium taxpayers office and regions,” Meyo said in a memo sent out on Thursday.

She said all KRA officers should monitor taxpayers closely to ensure "they pay their fair share for them to sustain a winning streak."

“As we move forward, we all need to take cognisance of the fact that it is 14 days into the month whereas the PAYE due is behind five days,” Meyo said.

She said they were targeting 100 percent collection but had only collected 91 percent from large taxpayers office, 85 percent from medium taxpayers, 75 percent from the regions and 26 percent from the public sector division.

She instructed tax collectors to contact the taxpayers in an "appropriate manner to ensure that they uphold high standards of service delivery".

Meyo said that KRA is concerned that the number of taxpayers who claim the Earned Income Tax Credit is going up and ordered staff to pick the top 100 and validate the credit card score to confirm corrections.

 

KRA also instructed their stations to increase the tax-base collection by 15 percent.

“Proceed to confirm the status and strive to achieve this key performance index as its part of our core mandate and critical to success,” Meyo said.

Sources within KRA told the Star that all staff underwent a performance validating exercise on January 10 to establish the unsatisfactory performance recorded and the required remedy.