Kenya Revenue Authority has warned trading institutions from carrying out any transactions with anyone whose PIN is not on iTax platform.
According to the authority's Domestic tax chief manager Judith Njagi , Pins not on iTax are invalid and they create way for tax evasion.
Itax is KRA's online system used to file returns for Pay As You Earn ,Value Added Tax, Individual annual Income Tax Return , and agency revenues.
The caution comes as the authority seeks to enlarge its tax bracket after missing its target for the 2017/2018 financial year by Sh172.4 billion.
Full year’s economic and budget review by the National Treasury shows that KRA collected Sh1.48 trillion in the year ending June 2018 against a target of Sh1.65 trillion.
“ Itax is the only platform we use to register any pin, so any person who has a pin not on iTax should know the pins are not authentic and nobody should trade with such people for such a transaction would also be invalid,” Njagi said.
She added that culprits avoiding to migrate to iTax are evading to remit tax and if caught will be forced to pay the principal tax and penalties from their initial dates of transaction.
“ Any Individual or corporate with taxable income who fails to acquire PIN and register for the liable tax obligations is subjected to forced registration, addition of relevant tax obligations and assessment for back tax with penalties and intrest”.
In the financial year 2017/2018 the authority through the help of third party information was able to nub 20,000 qualified taxpayers who were trying to evade tax.
Some of the third party information sources include Integrated Financial Management Information System to nub those transacting with the government, and Integrated Customs Management System to nub those in the export and import business. The two systems are linked to iTax.
Others are data from the water service providers and Kenya Power, mostly used to net in landlords.
“Through this data, we are able to see the who is transacting with the government, the amounts involved, and the goods, and we will come for you based on that information,” Njagi said.
Pins which can not be tracked using the third party data are set for suspension.
To further net in tax evaders, the tax boss revealed that they appoint withholding tax agents for VAT and Rental Income.
The agents will look out for large suppliers and land owners, and after carrying out a transaction with them, they will withold six per cent for VAT and 10 per cent for Rental.
Through this KRA will be able to bring such taxpayers on board and go for the remaining balance.
Out of the total collected tax in the last financial year, Sh350.63 billion was payroll tax, Sh99.21 billion Import Duty, Sh162.48 Excise Duty, Sh206.25 billion VAT charged on local products, Sh144.8 billion VAT on imports.
Tax from investment revenue was Sh24.12 billion while Sh3.07 billion was from traffic revenue.