For many governments, filing income tax return is not just a legal requirement but also an act of patriotism. Taxation is one common identifier for citizens across varied countries. It therefore makes sense that with only one month to June, more taxpayers will be filing their annual tax returns, while more employers will issue out p9 forms.
Citizens are expected to comply with their tax obligations on income earned during a given Financial Year period, and account for the same by filing their tax returns. As we approach the month of June, we therefore call upon taxpayers to file their returns and avoid penalties.
According to renowned theoretical physicist Albert Einstein, income tax remains the hardest thing to understand in the world. Einsten’s thoughts resonate well with the majority of taxpayers.
American columnist ‘Ann Landers’ echoed these thoughts through the quote, "Today, it takes more brains and effort to make out the income-tax form than it does to make the income." Well, taxpayers are quite often thankful for their incomes, especially at the point where they face tax deductions.
While as a taxpayer, your heart may skip a beat when you check your tax deductions, it is still noble to pay your taxes. Tax collection generates public revenues that finance investments in human capital, infrastructure, and the provision of services for citizens and businesses.
American jurist and legal scholar Oliver Wendell Holmes Jr termed taxes ‘what we pay for a civilized society’. This quote is inscribed to date on the entrance to the Internal Revenue Service in Washington DC.
In Kenya, during this period (2021-22) of filing tax returns, an 18 per cent filing growth was recorded by March 30, compared to last year same period. Filing tax returns can be viewed as a moral and social duty of every responsible citizen.
In the Kenyan context, the law provides that all KRA PIN holders file tax return. Kenya operates a self-assessment tax regime where every person is required to assess himself or herself and declare the income earned during the year and pay any taxes due.
To drive compliance, tax agencies implement various initiatives to support their customers in complying with their return filing obligations. Communication and awareness campaigns drive compliance. Taxpayers are more likely to comply with their obligations, when they know what they are required to do.
At KRA, communication and awareness commenced in early January 2023 through direct marketing, for individual and corporate taxpayers. KRA continues to create awareness of return filing by sharing how-to-file guides and offering filing support to taxpayers.
KRA estimates that by June 30, 6 million taxpayers will have filed their 2022 income tax returns. This is a great increase from the 5.5 million total returns filed for the previous year of income 2021.
Further, KRA collaborates with strategic stakeholders to rally compliance. Such stakeholders include; business member organizations, tertiary institutions of learning, professional bodies and religious organizations among others, to implement filing support for their members. Through this collaboration, KRA tailors filing support activities to meet the unique needs of the members.
Additionally, tax agencies offer onsite and offsite filing support that enables taxpayers to file returns at their convenience. For KRA, this is executed across all Tax Service Offices and Huduma centres.
We also partner with county and local governments to implement Ushuru mashinani and mobile tax office filing support to taxpayers at the grassroots. Further, our staff offer remote filing support through social media and the contact centre.
KRA appreciates all taxpayers who have filed their tax returns. We also laud employers who have already released P9 forms and are encouraging their employees to file their income tax returns.
The return filing period for 2022 commenced in January 2023 and will close at the end of June 2023. So with June fast approaching, have you filed your tax return? We encourage you to do so today.
